An investor believes that a bond may temporarily increase in credit risk. Which of the following would

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An investor believes that a bond may temporarily increase in credit risk. Which of the following would be the most liquid method of exploiting this?

a. The purchase of a credit default swap.

b. The sale of a credit default swap.

c. The short sale of the bond.

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Investments

ISBN: 9781259277177

11th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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