With LIBOR at 4%, a manager wants to increase the duration of his portfolio. Which of the following securities should he acquire to increase the duration of his portfolio the most?
A. A 10-year reverse floater that pays 8%- LIBOR, payable annually
B. A 10-year reverse floater that pays 12% - 2×LIBOR, payable annually
C. A 10-year floater that pays LIBOR, payable annually
D. A 10-year fixed rate bond carrying a coupon of 4% payable annually