Say an Active Bond Manager Believed That Bond Market Yields

question 35

True/False

Say an active bond manager believed that bond market yields were going to fall in the near future.In order to achieve higher returns the manager would sell short-term bonds and buy long-term bonds now.

---

Definitions:

Puncture

A small hole made by a sharp object in a surface.

Inflate

To cause to increase in size, volume, or importance, sometimes referring specifically to the increase of prices or the expansion of economic bubbles.

Patch

A small piece of material used to mend or cover a hole or a weak spot.

Bulges

Protrusions or outward expansions in a surface or structure, often caused by pressure from within.