Question 1
In times of economic uncertainty, yields on ________ bonds tend to rise and yields on ________ bonds tend to fall.
◦ junk; AA rated
◦ government; corporate
◦ corporate; government
◦ Treasury; municipal.
Question 2
Speculative investors seeking short-term capital gains will profit when
◦ inflation rates are rising.
◦ interest rates are stable.
◦ interest rates are falling.
◦ interest rates are rising.