An ideal time to buy bonds with distant maturities is when the investor expects future yield curves to be [blank].

Question

Quizplus · Accepted Answer

When an investor expects future yield curves to be downward sloping, it indicates that interest rates are expected to decrease over time. Buying long-term bonds before this decrease means locking in higher interest rates now, which can lead to capital appreciation as the yields on existing bonds fall.

An Ideal Time to Buy Bonds with Distant Maturities Is