An Example of Simultaneous Buying of One Bond (For Example,with

question 8

Multiple Choice

An example of simultaneous buying of one bond (for example,with fixed rate coupon payments) and selling of another (for example,with variable rate interest payments) occurs when one participates in a:

• A)bond ladder strategy.
• B)bond swap.
• C)interest rate futures transaction.
• D)bond portfolio immunization strategy.