You are the manager of a bond portfolio. It appears that the economic cycle is beginning to mature, inflation is expected to accelerate, and, to contain the economic expansion, central bank policy is moving toward constraint (the Fed will increase interest rate). Out the four Treasury securities below, circle the bond that you prefer to buy. Briefly justify your answer (why did you choose the bond).

\begin{tabular}{ccccccc} \hline & & \multicolumn{4}{c}{ Total Return Total Return Total Return } \\ Bond & Annual Coupon Rate & Maturity & Price at 7.5% & 5.00% & 7.50% & 10.00% \\ \hline A & 10.00% & 3 yrs & 106.61 & 7.23% & 7.50% & 7.77% \\ B & 7.50% & 5 yrs & 100.00 & 8.59% & 7.50% & 6.48% \\ C & 10.00% & 10 yrs & 117.37 & 10.85% & 7.50% & 4.47% \\ D & 5.00% & 15 yrs & 77.71 & 13.80% & 7.50% & 2.01% \\ \hline \end{tabular} Semi- annwal payments Yield same on all matuirtes