An active investor enters a duration-neutral yield curve flattening trade that combines 2-year and 10-year Treasury positions.

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An active investor enters a duration-neutral yield curve flattening trade that combines 2-year and 10-year Treasury positions. Under which of the following yield curve scenarios would you expect the investor to realize the greatest portfolio gain?

A. Bear flattening

B. Bull flattening

C. Yield curve inversion

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 05, 2023 01:25 AM

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An active investor enters a duration-neutral yield curve flattening trade that combines 2-year and 10-year Treasury positions.

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In a durationneutral yield curve flattening trade an investor typically combines positions in 2year ...View the full answer

Fixed Income Analysis

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