A Portfolio Manager Sells Treasury Bonds and Buys Corporate Bonds

question 30

Multiple Choice

A portfolio manager sells Treasury bonds and buys corporate bonds because the spread between corporate- and Treasury-bond yields is higher than its historical average. This is an example of ________ swap.

• A) a pure yield pickup
• B) a rate anticipation
• C) a substitution
• D) an intermarket spread

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Definitions:

Ritual Sacrifice

A ceremonial act of offering something valuable to a deity or higher power, often as a form of worship or appeasement.

Grievances

Complaints or disputes brought forward by individuals or groups, typically regarding perceived injustices or unmet expectations in a workplace or organizational setting.

Forgiving Someone

The act of letting go of resentment, anger, or claims against another who has wronged you.

Abused Children

Minors who have experienced physical, emotional, sexual, or psychological harm by caregivers or others.