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Assume Newly Issued 30-Year-On-The-Run Bonds Sell at Higher Yields (Lower

Question 27

Multiple Choice

Assume newly issued 30-year-on-the-run bonds sell at higher yields (lower prices) than 29 ½ year bonds with a nearly identical duration.A hedge fund that sells 29 ½ year bonds and buys 30 year bonds is taking a ______.


A) market neutral position
B) conservative position
C) bullish position
D) bearish position
E) none of the above

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