单选题 An analyst forecasts that spot interest rates will increase more than the increase implied by the current forward interest rates. Under these circumstances:

A. the analyst should establish a bearish bond portfolio.
B. all bond positions earn the same return.
C. the analyst should establish a bullish bond portfolio.

【正确答案】 A

【答案解析】Bond prices fall with a rise in interest rates. If realized rates rise more than the associated forward rate implied, then a bearish bond position will be the most beneficial.