Question: Which one of the following bonds would you select if

Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next 6 months?
a. A bond with a Macaulay duration of 8.46 years that’s currently being priced to yield 7.5%
b. A bond with a Macaulay duration of 9.30 years that’s priced to yield 10%
c. A bond with a Macaulay duration of 8.75 years that’s priced to yield 5.75%


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  • CreatedApril 28, 2015
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