You want to invest in a bond holding it until maturity, which is ten years from today, and aim at maximizing the return from your investment. You expect interest rates to very strongly decrease in the future. The term structure is upward sloping. There is no arbitrage. You have to decide between two bonds, A and B, issued by the same entity, both with ten years to maturity, same credit risk and same yield to maturity. The only difference is that bond A pays a high coupon rate while bond B pays a low coupon rate. Which bond do you buy?

1. A. High coupon rate (Bond A)
2. B. Low coupon rate (Bond B)
3. C. Indifferent
4. D. Cannot tell, as it depends on the relative prices of these bonds
5. E. Cannot tell, as it depends on other variables other than the relative prices