A Speculator Who Forecasts an Unexpected Fall in Long-Term Yields

question 87

True/False

A speculator who forecasts an unexpected fall in long-term yields would consider selling bond futures contracts.

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Definitions:

Buyers

Individuals or entities that purchase goods or services for use or consumption.

Tax

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Price

The amount of money expected, required, or given in payment for something.

Equilibrium Price

The price at which the supply of an item matches its demand, resulting in market stability.