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You bought a 10-year zero-coupon treasury bond at a premium 5 years ago. Looking at all the recent economic and political indicators, you expect the
You bought a 10-year zero-coupon treasury bond at a premium 5 years ago. Looking at all the recent economic and political indicators, you expect the Fed may have an interest rate hike in the near future. What is your best decision today?
buy more long-term bonds | ||
sell your bond. | ||
do nothing | ||
buy low coupon bond | ||
sell short term high coupon bonds |
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