If you are an income- oriented investor and you feel that interest rates are relatively high and will decline in the future, you should purchase
A) zero- coupon, long- term bonds.
B) short- term, zero- coupon bonds.
C) long- term, freely callable bonds.
D) long- term, non- callable bonds.
Correct Answer:
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Q18: The current yield on a bond is
Q19: Long- term bonds are_ than short- term
Q20: Yield-to-call on a bond with a coupon
Q21: Which one of the following statements concerning
Q22: The practical application of bond portfolio immunisation
Q24: Which one of the following will tend
Q25: The expectations hypothesis states that investors
A) normally
Q26: The duration of a bond will increase
Q27: A bond matures in 30 years, has
Q28: The liquidity preference theory supports _yield curves.
A)
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