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You find a five year double A Xerox bond priced to yield 6.00%. Another similar risk five-year F5 Systems bond priced to yield 6.50%. If

You find a five year double A Xerox bond priced to yield 6.00%. Another similar risk five-year F5 Systems bond priced to yield 6.50%. If you expect interest rates to rise; which makes sense:

A.
Short the F5 Systems bond, and buy the Xerox bond.

B.
Buy the F5 Systems bond, and short the Xerox bond.

C.
Short both the F5 Systems bond and the Xerox bond.

D.
Buy both the F5 Systems bond and the Xerox bond.

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Previous Question Next Question

	A.	Short the F5 Systems bond, and buy the Xerox bond.
	B.	Buy the F5 Systems bond, and short the Xerox bond.
	C.	Short both the F5 Systems bond and the Xerox bond.
	D.	Buy both the F5 Systems bond and the Xerox bond.