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Long term Treasury Bonds are selling at yields to maturity of 8 per cent. You currently expect interest rates to fall, although the rest of

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Long term Treasury Bonds are selling at yields to maturity of 8 per cent. You currently expect interest rates to fall, although the rest of the market expect a neutral or no change position throughout 2020. In each question, choose the bond from a) OR b), that will provide a higher capital gain if you are correct: Bond Type Maturity Q1 a. BBB rated Bond and a Coupon is 5% OR b. Aaa rated Bond and a Coupon is 5% 10 years to maturity 10 years to maturity Q2 10 years to a. AAA rated Bond with coupon rate at 4% and maturity Callable at 110 OR b. AAA rated Bond with coupon rate at 8% and 10 years to Callable at 110 maturity Q3 10 years to maturity a. Treasury Bond 3% coupon, with Yield to maturity = 4% OR b. Treasury Bond 9% coupon, with Yield to maturity = 4% 10 years to maturity

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