A Portfolio Manager Believes Interest Rates Will Drop and Decides

question 21

Multiple Choice

A portfolio manager believes interest rates will drop and decides to sell short-duration bonds and buy long-duration bonds. 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:

Social Bonding

The process of developing attachments and connections between individuals, which can foster a sense of belonging and mutual support within groups or communities.

Peer Evaluations

Assessments made by individuals of the same status, such as coworkers or classmates, regarding each other's performance, skills, or behaviors.

Self-esteem

An individual's overall subjective emotional evaluation of their own worth.

Self-control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.