Question
Suppose you sell the 10-year, A-rated 7% bonds you own, which are yielding 8%, and replace them with an equal amount of 10-year, A-rated 8%
Suppose you sell the 10-year, A-rated 7% bonds you own, which are yielding 8%, and replace them with an equal amount of 10-year, A-rated 8% bonds that are priced to yield 9%. In this situation you are executing
a laddered bid
a spread bid
a yield pickup swap
an immunization deal
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Financial Markets Instruments And Institutions
Authors: Anthony M. Santomero, David Babbel
2nd Edition
0072358688, 9780072358681
