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Suppose you also want to invest in these bonds

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Suppose there are two bonds, they are exactly the same except one has 10-years to maturity and the other has 25-years. (They have the same face value of $1,000, and same coupon rates). Suppose you expect the FED to further reduce the interest rates by 0.5%=50bsp (bsp means basis points where 100bsp=1%)

Suppose you also want to invest in these bonds.

Would you buy them now, given your expectation on the FED's decision?

Reference no: EM132580043

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