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Please refer to the question in the screenshot. Extract from practice exam You are a bond trader and you expect interest rates to fall. You

Please refer to the question in the screenshot. Extract from practice exam

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You are a bond trader and you expect interest rates to fall. You want to sell bonds that you expect to perform relatively poorly so that you can allocate the funds to the bonds you expect to perform relatively well. Your portfolio currently consists of the following bonds: . Euro Bonds: 20 years to maturity, 1.5%% yield. . Aussie Bonds: 3 years to maturity, 5% yield. . British Bonds: 30 years to maturity, 2% yield. . Yankee Bonds: 5 years to maturity, 7% yield. Which bonds should be removed from the portfolio and which should have the investment allocation increased? Select one: O a. You should remove the Aussie and Yankee bonds and invest more in the Euro and British bonds O b. They will all perform equally, do nothing. O c. Immediately sell the bonds because interest rates are going to fall O d. You should remove the Euro and British bonds and invest more in the Aussie and Yankee bonds O e. Don't sell, you should buy more of everything

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