Asked by
Giuseppe Alastra
on Oct 19, 2024
Verified
The exchange of one bond for a bond that has similar attributes but is more attractively priced is called ________.
A) a substitution swap
B) an intermarket spread swap
C) a rate anticipation swap
D) a pure yield pickup swap
Substitution Swap
A Substitution Swap is a strategy in fixed-income markets where an investor exchanges one bond for another with similar features but more attractive terms.
- Comprehend the foundational principles and significance of swaps within the management of bond portfolios.
Verified Answer
MS
Learning Objectives
- Comprehend the foundational principles and significance of swaps within the management of bond portfolios.
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