Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what should i buy if the fed is raising rates due

What should I buy if the Fed is raising rates due to a strong economy and...

90.2K

Verified Solution

Question

Finance

What should I buy if the Fed is raising rates due to a strongeconomy and the government is cutting taxes?

  1. Treasury Bonds
  2. Medium term higher yield corporate bonds
  3. Longer term Municipal bonds
  4. 20 yr below investment grade bond

3. T/F General obligation muni bonds are backed by the fullfaith and credit of the issuing state

4. T/F If I have a an investment horizon of 7 years, I canimmunize my interest rate risk in my bond portfolio by targeting aduration of 7

Answer & Explanation Solved by verified expert
4.0 Ratings (647 Votes)
SOLUTION Treasury bond TBond A Treasury bond TBond is a marketable fixedinterest US government debt security with a maturity of more than 10 years Treasury bonds make interest payments semiannually and the income received is only taxed at the federal level Treasury bonds are known in the market as primarily riskfree they are issued by the US government with very little risk of default    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What should I buy if the Fed is raising rates due to a strongeconomy and the government is cutting taxes?Treasury BondsMedium term higher yield corporate bondsLonger term Municipal bonds20 yr below investment grade bond3. T/F General obligation muni bonds are backed by the fullfaith and credit of the issuing state4. T/F If I have a an investment horizon of 7 years, I canimmunize my interest rate risk in my bond portfolio by targeting aduration of 7

Other questions asked by students

Q

15 10 5 0 5 10 5 10 15 20 Write an equation for the...

Geometry
Q

Let f(x) = ?x^4 ? 4x^3. (i) Find the intervals of increase/decrease of f. (ii) Find the...

Basic Math
Q

2 A ray of light passes normally through a slab u 1 5 of thickness...

Physics
Q

The moment of inertia of a solid cylinder of mass M length 2R and radius...

Physics
Q

14 A bullet of mass 50 g moving horizontally with a velocity of 400 m...

Physics
Q

work aspx homeworkId 6438281 Quest

Geometry
Q

Question 4 Find the unit price If necessary round your answer to the nearest cent...

Basic Math
Q

Question 2 Multiple Choice Worth 4 points Calculating Net Worth LC The assets and liabilities...

Statistics
Q

Graph the polar equation r 5 cos 50 O A 10 10 10 10 Q...

Calculus
Q

John Bautista needs $23,800 in 10 years. Click here to view factor tables What amount...

Accounting
Q

Davison Toaster Corp. sells its products for $200 per unit. It has the following costs:...

Accounting
Q

A foreign subsidiary of a U.S. corporation purchased equipment on January 4, 20x1. (A) How...

Accounting