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Alberto Wants to Profit Should an Unexpected Decrease in Market

Question 134

Multiple Choice

Alberto wants to profit should an unexpected decrease in market interest rates occur. Alberto should purchase:

A) Three-year 6% bonds.
B) Three-year 8% bonds.
C) Ten-year 5% bonds.
D) Ten-year 9% bonds.
E) Ten-year zero-coupon bonds.

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