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You have your money divided between the following government bonds in the following proportions. 33% in 5 -Year bonds at 5% yield 33% in 10
You have your money divided between the following government bonds in the following proportions. 33% in 5 -Year bonds at 5% yield 33% in 10 -year bonds at 5% yield 33% in 15-year bonds at 5% yield You expect the yield curve to change such that will decrease to 4% at 5 -year bonds, remain at 5% for 10 -year bonds and rise to 6% for 15 year bonds. Which of the following represents a sensible reallocation of your portfolio based on your expectations? Select one: a. None of the above. b. 45% in 5 -year bonds, 15% in 10-year bonds and 40% in 15-year bonds c. 20% in 5 -year bonds, 30% in 10-year bonds and 50% in 15-year bonds. d. 47% in 5 -year bonds, 33% in 10-year bonds and 20% in 15-year bonds. You have your money divided between the following government bonds in the following proportions. 33% in 5 -Year bonds at 5% yield 33% in 10 -year bonds at 5% yield 33% in 15-year bonds at 5% yield You expect the yield curve to change such that will decrease to 4% at 5 -year bonds, remain at 5% for 10 -year bonds and rise to 6% for 15 year bonds. Which of the following represents a sensible reallocation of your portfolio based on your expectations? Select one: a. None of the above. b. 45% in 5 -year bonds, 15% in 10-year bonds and 40% in 15-year bonds c. 20% in 5 -year bonds, 30% in 10-year bonds and 50% in 15-year bonds. d. 47% in 5 -year bonds, 33% in 10-year bonds and 20% in 15-year bonds
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