Which one of the following bonds would you select if you thought market interest rates were going

Question:

Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months?
a. A bond with a Macaulay duration of 8.36 years that’s currently being priced to yield 7.25%
b. A bond with a Macaulay duration of 9.23 years that’s priced to yield 9.86%
c. A bond with a Macaulay duration of 8.68 years that’s priced to yield 5.94%

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

Question Posted: