You expect interest rates to decline in the near future even though the bond market is not indicating any sign of this change. Which one of the following bonds should you purchase now to maximize your gains if the rate decline does occur? A. short-term; low coupon? B. short-term; high coupon? C. long-term; zero coupon? D. long-term; low coupon? E. long-term; high coupon
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Home » Business » You expect interest rates to decline in the near future even though the bond market is not indicating any sign of this change. Which one of the following bonds should you purchase now to maximize your gains if the rate decline does occur? A.