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Which one of the following bonds would you select if you thought market interest rates...

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Accounting

Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months?

a. A bond with a Macaulay duration of 7.28 years that's currently being priced to yield 7.83%.

b. A bond with a Macaulay duration of 14.59 years that's priced to yield 8.55%.

c. A bond with a Macaulay duration of 7.24 years that's priced to yield 5.97%.

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