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please answer the question for me uestion 2 In the management of bonds, portfolios, identify 8 strategies that constitute bond swapping and discuss analytically the
please answer the question for me
uestion 2 In the management of bonds, portfolios, identify 8 strategies that constitute bond swapping and discuss analytically the reasons and or advantages for investors who carry out each of them. ANSWER . A bond swap is a technique whereby an investor chooses to sell a bond and simultaneously purchase another bond with the proceeds from the sale. Stated differently, abond swap consists of selling one debt instrument in order to use the proceeds to purchase another debt instrument. Investors engage in bond swapping with the goal of improving their financial positions. A wide variety of swaps are generally available to help investors meet their specific portfolio goals. Some of the common bond-swapping strategies include the following: I . . Tax swap, Substitution swap, . Intermarket spread swap, Pure yield pickup swap, . Yield swap o Ate w Puestion 2 In the management of bonds, portfolios, identify strategies that constitute bond swapping and discuss analytically the reasons and or advantages for investors who carry out each of them, ANSWER . A bond swap is a technique whereby an investor chooses to sell a bond and simultaneously purchase another bond with the proceeds from the sale. Stated differently, abond swap consists of selling one debt instrument in order to use the proceeds to purchase another debt instrument, investors engage in bond swapping with the goal of improving their financial positions. A wide variety of swaps are generally available to help investors meet their specific portfolio goals. . Some of the common bond-swapping strategies include the following: . Tax swap - . Substitution swap, . Intermarket spread swap, Pure yield pickup swap, . . Yield swap, o ir wStep by Step Solution
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