A bond portfolio manager notices a hump in the yield curve at the 5-year point. How might a bond manager take advantage of this event?
A. Buy the 5-year bonds, and short the surrounding maturity bonds.
B. Buy the 5-year bonds, and buy the surrounding maturity bonds.
C. Short the 5-year bonds, and short the surrounding maturity bonds.
D. Short the 5-year bonds, and buy the surrounding maturity bonds.
Answer: A