A Substitution Swap Is an Exchange of Bonds Undertaken to

question 31

Multiple Choice

A substitution swap is an exchange of bonds undertaken to

• A)change the credit risk of a portfolio.
• B)extend the duration of a portfolio.
• C)reduce the duration of a portfolio.
• D)profit from apparent mispricing between two bonds.

---

Definitions:

Autocratic

A leadership style characterized by individual control over all decisions and little input from group members.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious and archetypes.

Psychologist

A professional specialized in the study of the human mind and behavior, often working in various fields such as research, clinical practice, or counseling.

Delegation

The assignment of responsibility or authority from one individual to another for the completion of specific tasks or duties.