Question: Question 2 7 You bought a 1 0 year zero - coupon treasury bond at a premium 5 years ago. Looking at all the recent

Question

27

You bought a

10

year zero

-

coupon treasury bond at a premium

5

years ago. Looking at all the recent economic and political indicators, you expect the Fed may have an interest rate hike in the near future. What is your best decision today?

sell your bond.

buy more long

-

term bonds

sell short term high coupon bonds

do nothing

buy low coupon bond

Question 2 7 You bought a 1 0 year zero - coupon

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