单选题 A portfolio manager anticipates a major increase in market interest rates. Which trading strategy would be most likely to generate above average returns in a bond investment? Purchasing: A. short maturity bonds with high coupon rates. B. speculative grade bonds with high coupon rates. C. bonds that will increase the average duration of the investment portfolio.

【正确答案】 A

【答案解析】The price volatility of non-callable bonds is inversely related to the level of market yields. As yields increase, bond prices fall, and the price curve gets flatter. Bond price sensitivity is lowest when yields are high.