You are an investor anticipating a decrease in interest rates. Classify, by decreasing order of preference, these bonds:

floating-rate bond to be redeemed (bullet) in 10 years;

floating-rate bond to be redeemed (bullet) in seven years;

perpetuity with fixed rate;

fixed-rate bond to be redeemed (bullet) in five years;

floating-rate bond with constant instalments with five-year maturity;

floating-rate bond with constant amortisation with five-year maturity.

AppendixLO1