question archive The yield curve is currently flat at 6% and a bond investor is concerned about the possibility of rising interest rates

The yield curve is currently flat at 6% and a bond investor is concerned about the possibility of rising interest rates

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The yield curve is currently flat at 6% and a bond investor is concerned about the possibility of rising interest rates. Which bond is most likely to be considered a hedge against rising interest rates?

A)A 5-year, 6% coupon straight bond

B) A 5-year, 6% coupon bond putable at 100% of par

C) A 5-year, 6% coupon bond callable at 102% of par

Option 1

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Option 2

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