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A committee member suspects that some of Pacific's bond holders are short-term speculators as opposed to long-term investors. He believes that interest rates are going
A committee member suspects that some of Pacific's bond holders are short-term speculators as opposed to long-term investors. He believes that interest rates are going to fall from current levels and asks you which Pacific bond would speculators buy to maximize short-term capital gains and why. (Hint: No additional calculations are required.)
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