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You have your money divided between the following government bonds in the following proportions. 2 0 % in 5 Year bonds at 6 % yield
You have your money divided between the following government bonds in the following proportions.
in Year bonds at yield in year bonds at yield in year bonds at yield
You expect the yield curve to change such that will increase to at year bonds, remain at for year bonds and fall to for year bonds. Which of the following represents a sensible reallocation of you portfolio based on your expectations?
A in year bonds, in year bonds and in year bonds. B in year bonds, in year bonds and in year bonds. C in year bonds, in year bonds and in year bonds D None of the above.
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