Using the duration and yield information in the table above, compare the price and yield behaviour of the two bonds under each of the following two scenarios (max. 0.5 page): i. Strong economic recovery with rising inflation expectations. ii. Economic recession with reduced inflation expectations.

\begin{tabular}{l|l|l} Properties & Bond A (Callable) & Bond B (Noncallable) \\ \hline Maturity & 2020 & 2020 \\ Coupon & 11.50% & 7.25% \\ Yield to maturity & 7.70% & 7.25% \\ Modified duration to maturity & 6.20 & 6.80 \\ Call date & 2014 & - \\ Call price & 105 & - \\ Yield to call & 5.10% & - \\ Modified duration to call & 3.10 & - \end{tabular}