Given the following bonds, if your horizon was three years, which bond would you select if...

  

 

 

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Given the following bonds, if your horizon was three years, which bond would you select if you expected interest rates to decrease? Which bond would you select if you expected interest rates to increase? Ticker Maturity Coupon Quality YTM Spread Modified Macaulay Convexity Rate Rating Duration Duration ABCDF A 3/24/2025 2.9% Aa1 1.02 29.1 bp 3.7 3.7 0.16 9/9/2029 2.3% A1 1.85 44.6 bp 7.4 7.5 0.63 C 3/18/2031 1.7% Aa1 1.92 51.4 bp 9.1 9.2 0.92 D 9/14/2042 3.9% A2 2.68 51.6 bp 14.9 15.2 2.79 E 6/11/2050 5.8% Baa2 4.2 190.1 bp 15.3 15.6 3.4 Given the following bonds, if your horizon was three years, which bond would you select if you expected interest rates to decrease? Which bond would you select if you expected interest rates to increase? Ticker Maturity Coupon Quality YTM Spread Modified Macaulay Convexity Rate Rating Duration Duration ABCDF A 3/24/2025 2.9% Aa1 1.02 29.1 bp 3.7 3.7 0.16 9/9/2029 2.3% A1 1.85 44.6 bp 7.4 7.5 0.63 C 3/18/2031 1.7% Aa1 1.92 51.4 bp 9.1 9.2 0.92 D 9/14/2042 3.9% A2 2.68 51.6 bp 14.9 15.2 2.79 E 6/11/2050 5.8% Baa2 4.2 190.1 bp 15.3 15.6 3.4