Assume newly issued 30-year-on-the-run bonds sell at higher yields (lower prices) than 29 ½ year bonds with a nearly identical duration.A hedge fund that buys 29 ½ year bonds and sells 30 year bonds is taking a _____.
A) market neutral position
B) conservative position
C) bullish position
D) bearish position
E) none of these
Correct Answer:
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