An investor who expects declining interest rates would maximize her capital gain by purchasing a bond that has a _________ coupon and a _________ term to maturity.
A. low; long
B. high; short
C. high; long
D. zero; long
Answer: D
An investor who expects declining interest rates would maximize her capital gain by purchasing a bond that has a _________ coupon and a _________ term to maturity.
A. low; long
B. high; short
C. high; long
D. zero; long
Answer: D