Explain a reasonable strategy for bond investors

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Reference no: EM13214942

Suppose interest rates have been at historically high levels the past two years and you therefore expect they will soon go down. A reasonable strategy for bond investors during this time period would be to:

A.invest only in stocks.

B.invest in short-term bonds to reduce interest rate risk.

C.buy only junk bonds which have higher interest rates.

D.invest in long-term bonds to lock in earning the high interest rates

Reference no: EM13214942

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