You Expect Interest Rates to Decline in the near Future

question 39

Multiple Choice

You expect interest rates to decline in the near future even though the bond market is not indicating any sign of this change. Which one of the following bonds should you purchase now to maximize your gains if the rate decline does occur?

• A) Short-term; low coupon
• B) Short-term; high coupon
• C) Long-term; zero coupon
• D) Long-term; low coupon
• E) Long-term; high coupon

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Very young children, typically under one year of age, who are in the earliest stage of human development.

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Limbs attached at the shoulder on the human body, primarily used for manual tasks and movement.

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Thoughtful and reasonable evaluation or contemplation of something.

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The pursuit of equality and fairness within society, particularly regarding the distribution of wealth, opportunities, and privileges.