To exploit an expected increase in interest rates, an investor would most likely

Name: To exploit an expected increase in interest rates, an investor would most likely
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Question

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Selling Treasury bond futures is a strategy investors use when they expect interest rates to rise because bond prices and interest rates move inversely. As interest rates increase, the value of existing bonds (with lower interest rates) decreases, making selling futures a way to profit from this expectation.

To Exploit an Expected Increase in Interest Rates, an Investor