If a yield curve is upward sloping, the investment strategy of buying long-term securities, then selling them after a short period (say, one year)is called
A)riding the yield curve.
B)liquidating the yield curve.
C)segmenting the yield curve.
D)a forward roll.
E)None of these are correct.

Question

Quizplus · Accepted Answer

Riding the yield curve is a strategy where investors purchase long-term bonds anticipating that the yield curve will remain upward sloping, and bond prices will increase as interest rates fall or remain stable over the short term. They plan to sell these bonds at a profit before maturity.

If a Yield Curve Is Upward Sloping, the Investment Strategy