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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