Statement: If the bond market is turning, HSU Asset Management would be switching $20 million of 7 year single-A nonbank financials bonds callable in two years to 15-year US Treasury bonds according to DC, CIO of HSU. DC thinks a further downturn in bond market is unlikely. So, in anticipation of this, HSU starts to buy 15-year US Treasury Bonds and sell single-A nonbank financial bonds. This has increased the HSU duration of its $200 million fixed income portfolio from 4.3 to 7.5, substantially higher than the benchmark duration of 5.5 because DC thinks the bond will start to rally. DC said he does not like single-A nonbank financials because these bonds are at lower spreads of about 50-100 basis points below the benchmark yield of US Treasuries." From the description of the above statement, explain the following: (1) What is the purpose of buying the 15-year US Treasury Bonds? (4 Marks) (i) Can you explain three purposes of selling 7 year single-A nonbank financials bonds callable in two years? (10 Marks) (iii) Can you describe the overall investment strategy that is pursued by HSU Asset Management? (6 Marks) Statement: If the bond market is turning, HSU Asset Management would be switching $20 million of 7 year single-A nonbank financials bonds callable in two years to 15-year US Treasury bonds according to DC, CIO of HSU. DC thinks a further downturn in bond market is unlikely. So, in anticipation of this, HSU starts to buy 15-year US Treasury Bonds and sell single-A nonbank financial bonds. This has increased the HSU duration of its $200 million fixed income portfolio from 4.3 to 7.5, substantially higher than the benchmark duration of 5.5 because DC thinks the bond will start to rally. DC said he does not like single-A nonbank financials because these bonds are at lower spreads of about 50-100 basis points below the benchmark yield of US Treasuries." From the description of the above statement, explain the following: (1) What is the purpose of buying the 15-year US Treasury Bonds? (4 Marks) (i) Can you explain three purposes of selling 7 year single-A nonbank financials bonds callable in two years? (10 Marks) (iii) Can you describe the overall investment strategy that is pursued by HSU Asset Management? (6 Marks)