Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months? a. A bond with a Macaulay duration of 8.46 years...

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Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months?

a. A bond with a Macaulay duration of 8.46 years that’s currently being priced to yield 7.5%

b. A bond with a Macaulay duration of 9.30 years that’s priced to yield 10%

c. A bond with a Macaulay duration of 8.75 years that’s priced to yield 5.75%

Answered Same Day Dec 25, 2021

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David answered on Dec 25 2021

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Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months? a. A bond with a Macaulay duration of 8.46 years...

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