A Bond Portfolio Manager Notices a Hump in the Yield

question 25

Multiple Choice

A bond portfolio manager notices a hump in the yield curve at the five year point.How might a bond manager take advantage of this event?

• A) Buy the 5 year bonds and short the surrounding maturity bonds
• B) Buy the 5 year bonds and buy the surrounding maturity bonds
• C) Short the 5 year bonds and short the surrounding maturity bonds
• D) Short the 5 year bonds and buy the surrounding maturity bonds

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Definitions:

Data Analysis

The process of examining, cleansing, transforming, and modeling data with the goal of discovering useful information, informing conclusions, and supporting decision-making.

Data Analytics

Data analytics encompasses the techniques and processes used to examine and analyze datasets to uncover trends, patterns, and insights, often for the purpose of making better decisions.

Data Analytics

The process of examining datasets to draw conclusions and insights, often using specialized systems and software.

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The methods and sequences of activities involved in the creation of a product, from raw materials to the final product.