With a Pure Pickup Yield Swap

question 47

Multiple Choice

With a pure pickup yield swap

• A)The owner thinks he can decrease the yield to maturity by selling a bond and buying a different bond of less risk
• B)The market is assumed to be totally efficient
• C)The key to the swap is that the bond price of one or both bonds has to be in disequilibrium
• D)None of the above

---

Definitions:

Middle-income Recipients

Individuals or families whose income level falls in the middle range of the socioeconomic spectrum in their society.

Workforce

The total number of people employed or seeking employment in a country or specific sector.

Payroll Tax Payments

Payments made based on wages and salaries to fund social security, healthcare, and other government benefits.

Social Security Retirement System

A government program that provides retirement, disability, and survivors benefits, funded by payroll taxes.