A Pure Yield Pickup Swap Involves Swapping Out of a

question 122

Multiple Choice

A pure yield pickup swap involves swapping out of a

• A) bond to realize capital losses into a comparable bond.
• B) low coupon bond into a comparable high coupon bond.
• C) high coupon bond into a comparable low coupon bond.
• D) bond that is underpriced into a comparable bond that is overpriced.
• E) bond that is overpriced into a comparable bond that is underpriced.

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Definitions:

Marine Layers

Strata of moist ocean air that is cooled below its dew point temperature and thus forms a layer of clouds at the surface or near the surface of a large body of water.

Sand Dunes

Hills or ridges of sand piled up by the wind in desert regions or near bodies of water.

Transgression

A geologic event where the sea advances over land areas, covering them with sediment layers due to rising sea levels.

Mudstone

A rock composed of consolidate mud (silt, clay, or especially a combination of the two).