Question: 3. Lets interject some real life for a minute. You are reviewing your bond portfolio. You expect central banks around the planet to keep increasing

3. Lets interject some real life for a minute. You are reviewing your bond portfolio. You expect central banks around the planet to keep increasing interest rates for the near future. You are concerned about the short-term value of your investment, and are wondering what would be the best kinds of bonds to invest in. In particular,

a) Would a longer or shorter maturity be better? Explain in 1-2 sentences.

b) Would higher, lower, or zero coupon be better? Explain in 1-2 sentences.

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