Multiple Choice
One-year securities are currently yielding 8 percent. You expect one-year securities to yield 10 percent next year. Currently, two-year securities are yielding 9.5 percent. Given this situation, portfolio managers would __________ two-year securities, pushing their yield __________.
A) buy; up
B) buy; down
C) sell; up
D) sell; down
Correct Answer:
Verified
Correct Answer:
Verified
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