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Suppose most investors believe the Fed is going to raise their policy rate next month but you have inside information that the Fed is actually
Suppose most investors believe the Fed is going to raise their policy rate next month but you have inside information that the Fed is actually going to lower the Federal Funds rate. Among the following bonds, which would be the best to own? Pick one.
A 5-year, 8%-coupon bond | ||
A 10-year, 8%-coupon bond | ||
A 5-year, 3%-coupon bond | ||
A 10-year, 3%-coupon bond |
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