Question: A bond portfolio manager will decrease the rate sensitivity of the portfolio by Buying 30-year Treasury bonds and selling 10-year agency bonds. Decreasing the duration

A bond portfolio manager will decrease the rate sensitivity of the portfolio by

Buying 30-year Treasury bonds and selling 10-year agency bonds.

Decreasing the duration of the portfolio.

Increasing the amount of long duration tax exempt securities and decreasing Treasury bills.

Buying 20 year agency bonds and selling 10 year Treasury bonds.

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