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A portfolio manager needs to allocate new money received from a client to fixed income. The PM believes that interest rates will increase in the
A portfolio manager needs to allocate new money received from a client to fixed income. The PM believes that interest rates will increase in the near future and remain elevated. The coupon structure most likely to be favored by the portfolio manager under these conditions is a:
A) fixed-coupon bond.
B) floating-rate note.
C) inverse floating-rate note.
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