[Answer] You find a 5-year AA Xerox bond priced to yield 6%. You find a similar-risk 5-year Canon bond priced to yield 6.5%. If you expect interest rates to rise which of the following should you do?

Answer: Buy the Canon bond and short the Xerox bond.
You find a 5-year AA Xerox bond priced to yield 6%. You find a similar-risk 5-year Canon bond pric…

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