A portfolio manager sells Treasury bonds and buys corporate bonds because the spread between corporate- and Treasury-bond yields is higher than its historical average. This is an example of ________ swap.

A) a pure yield pickup
B) a rate anticipation
C) a substitution
D) an intermarket spread

Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury with a maturity period typically ranging from 20 to 30 years.

Corporate Bonds

Debt securities issued by corporations to finance their operations, typically offering fixed interest payments and repayment of principal at maturity.

Yield Spread

The difference in yields between two different types of financial securities, often used as a measure of relative risk.