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QUESTION 65 Bob owns a 10-year bond (Bond A) that is selling for $969. He finds another bond (Bond B) with identical characteristics that is

QUESTION 65

Bob owns a 10-year bond (Bond A) that is selling for $969. He finds another bond (Bond B) with identical characteristics that is priced at $922 and decides to sell Bond A and buy Bond B. What is this type of strategy called?

a. Long short strategy.

b. Buy sell strategy.

c. Substitution swap.

d. Rate anticipation swap.

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