Question: Suppose Bond A carried a higher yield than comparable Bond B because of investors uncertainty about the future of company B. If you were an

Suppose Bond A carried a higher yield than comparable Bond B because of investors uncertainty about the future of company B. If you were an investment manager who thought the market was overplaying these fears. In particular, if you thought that yields on Bond A would fall by 50 basis points. Which bonds would you buy or sell? Explain in words.

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