He is satisfied with the current yield on 20-year bonds and, Ask an Expert

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On April 1, an institutional investor expects to receive about $50 million during the next three months, which he intends to invest in Treasury Bonds. He is satisfied with the current yield on 20-year bonds and decides to seek protection against a possible drop in rates. He could obtain such pricing protection by:

A. Buying T-Bond futures

B. Selling T-Bond futures

C. Buying T-Bills

D. Selling T- Bills

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M942460

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