You work for a bond trading firm. You think that market participants will soon realise that the world is far riskier than before and demand a higher yield to maturity from their corporate bond investments. Should you advise your bond traders to buy or sell corporate bonds?

Select one:

a. Buy long term bonds because they should rise in price by more than short term bonds

b. Buy short term bonds because they should rise in price

c. Buy because a higher yield means higher bond prices

d. Sell because the price of bonds falls as the yield to maturity increases