A bond swap involves liquidating a current bond position and later investing in a similar issue under more favorable conditions.

Name: A bond swap involves liquidating a current bond position and later investing in a similar issue under more favorable conditions.
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Question

Quizplus · Accepted Answer

A bond swap involves simultaneously selling one bond and purchasing another to improve the portfolio's yield, maturity, or credit quality, not just liquidating and later reinvesting.

A Bond Swap Involves Liquidating a Current Bond Position and Later