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7. (10 points) Assume that you manage a bond portfolio. The bonds in your portfolio differ in terms of maturity as well as coupon rates.
7. (10 points) Assume that you manage a bond portfolio. The bonds in your portfolio differ in terms of maturity as well as coupon rates. Looking ahead to the next twelve to eighteen months, you expect interest rates to rise significantly. You are required to keep it a bonds-only portfolio, that is you are not authorized to switch to equities. What actions might you take to adjust your bond portfolio for this anticipated change in interest rates? Explain your
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