You are a bond trader and the year is 2005 (i.e. a relatively ‘normal’ economic time). You are convinced that the Fed is going to make a major announcement at their next meeting. You don’t know if they are going to try to increase interest raise rates or lower them, but you definitely think that rates are going to move in some direction. Given this conviction, what types of bonds do you want to shift your portfolio to? In other words, think about what particular maturity and coupon rate you would want to have so you are not exposed to a shift in interest rates.