In a market of rising interest rates and positively sloped yield curves a dealer's carry income and long position are both likely to be profitable.

Question

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In a market of rising interest rates, a dealer's carry income (the income earned from holding securities) might be negatively affected because the cost of borrowing to finance these positions typically increases. Additionally, a long position in bonds would likely decrease in value as interest rates rise, making it less likely to be profitable.

In a Market of Rising Interest Rates and Positively Sloped