If You Expected Interest Rates to Fall,you Would Prefer to Own

question 76

Multiple Choice

If you expected interest rates to fall,you would prefer to own bonds with

• A) long durations and high convexity.
• B) long durations and low convexity.
• C) short durations and high convexity.
• D) short durations and low convexity.
• E) none of the above.

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Definitions:

Return On Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the return of an investment by its cost.

Financial Ratio

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