Which of the Following Would not normally Be a Reason

question 66

Multiple Choice

Which of the following would not normally be a reason for a bond swap?

• A) Increasing current yield
• B) Improving the quality of the portfolio
• C) Taking advantage of interest rate shifts
• D) Tax savings
• E) Realigning the portfolio's duration

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Definitions:

Induce Dipole

The temporary polarization of a molecule caused by the vicinity of a charged object or another polar molecule.

Electron Cloud

A model describing the area around an atomic nucleus where electrons are likely to be found, depicting electron positions as a cloud-like distribution.

Temporary Dipole

A temporary dipole occurs when there is a short-lived imbalance of electron density within a molecule, causing a temporary separation of charges.

Intermolecular Force

The forces of attraction or repulsion which act between neighboring particles (atoms, molecules, or ions).