You find a 5 year AA Xerox bond priced to yield 6%.You find a similar risk 5 year Canon bond priced to yield 6.5%.To take advantage of this you should do which of the following?
A) Short the Canon bond and buy the Xerox bond
B) Buy the Canon bond and short the Xerox bond
C) Short both the Canon bond and the Xerox bond
D) Buy both the Canon bond and the Xerox bond
Correct Answer:
Verified
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