The Phrase 'Yield Pick- Up' Refers To

Multiple Choice

The phrase 'yield pick- up' refers to:

A) a capital gain that the holder of a swap enjoys when the RBA decreases interest rates.
B) a gain that comes by switching from interest bearing to dividend bearing derivatives.
C) an arbitrage profit that a trader picks up by buying and selling two swap contracts simultaneously.
D) an increased floating rate yield obtained by investing in a high- yield bond and swapping into a floating- rate investment.