If interest rates are expected to rise,a wise strategy would be to sell treasury bills and buy treasury bonds.

Question

Quizplus · Accepted Answer

If interest rates are expected to rise, it would be a wise strategy to hold onto treasury bills as they have a shorter maturity and can be reinvested at a higher interest rate sooner. Buying treasury bonds with a longer maturity would lock in a lower interest rate for a longer period of time, resulting in potential opportunity cost if interest rates continue to rise.

If Interest Rates Are Expected to Rise,a Wise Strategy Would