Question: Please explain the difference between each answer. If you forecast that the market interest rate is going to decrease, which of the following strategy will

Please explain the difference between each answer. If you forecast that the

Please explain the difference between each answer.

If you forecast that the market interest rate is going to decrease, which of the following strategy will you implement to take advantage of this move in yield? Assume face value of $1,000. (a) Buy a 10-year zero-coupon bond. (b) Sell a 10-year 5% coupon bond. (c) Buy a 10 -year 5% coupon bond. (d) Sell a 10-year zero-coupon bond. (e) Buy a 10 -year zero-coupon bond, and sell a 10 -year 5% coupon bond

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