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Suppose you expect interest rates to increase in the future

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Suppose you expect interest rates to increase in the future. You are not indifferent toward interest rate risk and the desire to maximize expected return. If you hold a portfolio consisting of 50 percent short-term bonds (,1 year to maturity) and 50 percent long-term bonds, how might you adjust your portfolio to maximize your profit? Explain carefully.

Reference no: EM13321266

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