2.3 Bond Trading Strategies Flashcards

1
Q

An investor who thinks that interest rates will rise sharply in the future should shift into

A

bonds of higher quality with shorter maturities and higher coupons.

Bonds of higher quality with shorter maturities and higher coupons are less volatile during times of changing interest rates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly