When the bond investor believes interest rates are going to fall,the best strategy would be to:

Question

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When the bond investor believes interest rates are going to fall, the best strategy would be to take a bullish position in the market by buying long-term bonds. Lower interest rates bring higher bond prices and profits. Bond prices and interest rates are inversely related. Therefore, buying long-term bonds will result in higher profits when interest rates fall.

When the Bond Investor Believes Interest Rates Are Going to Fall,the