You are watching CNBC and they report that the Consumer Price Index is increasing. They also report that the price of gold is increasing and the Federal Reserve is looking to raise rates in the next 3 months. The current yield curve shows the one-year note yielding 2%, the five-year note yielding 3% and the thirty-year bond yielding 5%. You are looking to invest in a bond. What should you do given the news?

Group of answer choices

Purchase the 30-year bond which has the highest yield and interest rates are falling.

Purchase the 5-year note because you have no idea if rates are going up or down.

Purchase the one-year note so you can invest in higher rates in the future.

Not enough information.

None of the above.