You are an active bond portfolio manager. You and your team anticipate a parallel interest...
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Accounting
You are an active bond portfolio manager. You and your team anticipate a parallel interest curve shift that will increase rates by 1%. All of the following actions would decrease interest rate exposure towards rising rates EXCEPT for:
Sell AA-rated coupon bonds and buy B-rated corporate bonds of similar maturity
Sell AAA rated coupon bonds maturing in 17 years and buy zero coupon bonds maturing in 17 years.
Sell your intermediate government bond mutual fund and buy a short-term government bond fund
Sell US Government bonds and buy BB-rated corporate bonds of similar maturity.
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