Question
Anomaly switching is: Select one: a. When the interest rate cut is expected, but not implied by the yield curve, the low duration bonds are
Anomaly switching is: Select one:
a. When the interest rate cut is expected, but not implied by the yield curve, the low duration bonds are sold in favour of high duration bonds.
b. When the difference in the yield offered by the corporate bond compared to the government bond is higher given the perceived risk, an inter-market switch will undertake from the government bond to the corporate bond.
c. Moving between two bonds which are similarly apart from yield and price.
d. A market event that lowers risk appetite of bond investors lead to a purchase of a government bonds over corporate bonds.
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