Suppose Interest Rates Have Been at Historically Low Levels the Past

question 149

Multiple Choice

Suppose interest rates have been at historically low levels the past two years.A reasonable strategy for bond investors during this time period would be to

• A) invest in long-term bonds to reduce interest rate risk.
• B) invest in short-term bonds to reduce interest rate risk.
• C) buy only junk bonds which have higher interest rates.
• D) invest in long-term bonds to lock in a bond position for when interest rates increase in the future.

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Definitions:

Organizational Citizenship Behavior

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