Question: The normal spread between AAA rated and A rated bonds is 150 basis points. If the current spread is 250 points, what type bond strategy

The normal spread between AAA rated and A rated bonds is

The normal spread between AAA rated and A rated bonds is 150 basis points. If the current spread is 250 points, what type bond strategy should you use to maximize your profit? Explain the position. (10 points)

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