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Complete the sentences by deleting the inappropriate terms . (5 marks) 1.If interest rates are expected to rise, investors should buy [High / Low] coupon,

Complete the sentences by deleting the inappropriate terms.(5 marks)

1.If interest rates are expected to rise, investors should buy [High / Low] coupon, [Long / Short] term bonds because they are less volatile and will therefore have a smaller % of [Income /Capital Gain / Capital Loss].

2.The difference between what commercial paper is purchased for, and what it matures at, is taxed as [Income / Capital Gain / Capital Loss].

3.Bond prices are more sensitive to a 1% change in yield when yields are initially [High / Low].

It's asking which word in the brackets is the right decision

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