Question: True, False, or Uncertain and Explain. (a) Suppose that you want to invest $1,000 in a Treasury bond with 10 years to maturity. Two are

True, False, or Uncertain and Explain.

(a) Suppose that you want to invest $1,000 in a Treasury bond with 10 years to maturity. Two are available, one with a coupon rate of 6%, and the other with a coupon rate of 11%. If you expect to hold the bond until maturity, buying the 6% bond reduces the riskiness of your total return (relative to buying the 11% bond).

(b) In a volatile interest rate environment, a barbell strategy can usually be expected to outperform a bullet strategy.

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