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:

Exports

Goods or services sent from one country to another for sale.

Imports

Goods or services brought into one country from another for sale or use.

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Spring Clearance

A period usually set by retailers to clear out seasonal merchandise at reduced prices.