Explain why some investors might choose to go long a fixed income instrument and short a floating rate instrument using the examples below:

The term structure of interest rates for the next 2 years is:

c (0.054 , 0.06 , 0.544 , 0.0618)

The rate above is per 1/2 year (total of 2 years). The effective semiannual rate is the rate posted divided by 2.

The fixed term interest rate alternative is a fixed instrument paying 5.5%.