Investors may attempt to benefit from the higher yields on longer-term securities even though they have only short-term funds to invest by using a strategy called ________ the yield curve.
A)extending
B)holding
C)riding
D)exploiting

Question

Quizplus · Accepted Answer

Riding the yield curve involves buying longer-term bonds with the expectation that their value will increase as they approach maturity and interest rates potentially decline, allowing investors to sell them at a profit before maturity, despite initially investing with short-term funds.

Investors May Attempt to Benefit from the Higher Yields on Longer-Term