After reading this chapter, a classmate has come to you confidentia lly after class to discuss making

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After reading this chapter, a classmate has come to you confidentia lly after class to discuss making some money trading bonds based on an interest rate projec­tion formula she learned in economics class. She tells you that it is easy to make money whenever interest rates fall because bond prices always move in the oppo­site direction of interest rates. Do you think that your classmate is correct in her thinking?

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