You are predicting that market interest rates will decline sharply in the near future. Which of the following would help you best take advantage of this future development?

Question $1$ Answer

a$.$

You should sell bonds now, before bond prices decreased.

b$.$

You should buy bonds now, before bond prices decreased.

c$.$

You should buy bonds now, before bond prices increased.

d$.$

There is no way to determine what to do without knowing exact interest rates.

e$.$

You should sell bonds now, before bond prices increased.