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Assume the yield curve has a positive slope. You purchase a bond, hold it for a period of time and then sell. Which of the
Assume the yield curve has a positive slope. You purchase a bond, hold it for a period of time and then sell. Which of the following describes "Roll-Down?" a. You will sell the bond at a lower yield-to-maturity than you bought it, which increases your ROR. b. You will sell the bond at a higher yield-to-maturity than you bought it, which increases your ROR. c. You will sell the bond at a lower yield-to-maturity than you bought it, which deceases your ROR. d. You will sell the bond at a higher yield-to-maturity than you bought it, which decreases your ROR.
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