If issuers of securities (borrowers) and investors suddenly expect interest rates to decrease, their actions to benefit from their expectations should cause
A) long-term yields to rise.
B) short-term yields to decrease.
C) prices of long-term securities to decrease.
D) A and B
E) none of the above

Question

Quizplus · Accepted Answer

The Answer of If issuers of securities (borrowers) and investors suddenly expect interest rates to decrease, their actions to benefit from their expectations should cause
A) long-term yields to rise.
B) short-term yields to decrease.
C) prices of long-term securities to decrease.
D) A and B
E) none of the above

If Issuers of Securities (Borrowers) and Investors Suddenly Expect Interest