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Business, 24.12.2019 01:31 dontcareanyonemo

If a bond manager expects the yield curve to sharply steepen with longer rates going higher and shorter rates going lower, what type of duration would the manager prefer? which of the following bonds would best accommodate the manager under this scenario?

a. att 12% due 12/31/2017 @ 10% yield
b. dupont 3% due 12/31/2047 @ 10% yield
c. ustn 3% due 12/31/2047 @ 6% yield

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