You have noticed that the spread between AAA rated corporate bonds and treasury bonds have widened. You also notice that the yield curve is inverted.

You must make a choice between the following three sets of non-callable bonds. For each set, select the bond that would be best for your portfolio, given your interest rate outlook in Part b. In each case, briefly discuss why you selected the bond.

		Maturity	Coupon	Yield to Maturity
Set 1:	Bond A	20 years	5%	7%
	Bond B	20 years	8%	8%
Set 2:	Bond C	20 years	5%	8%
	Bond D	12 years	7%	8%
Set 3:	Bond E	15 years	10%	6%
	Bond F	20 years	10%	10%