When yields are expected to __________ in the future, investors prefer __________ long-term securities.
A) rise; hold
B) rise; not to hold
C) fall; not to hold
D) None of the above

Question

Quizplus · Accepted Answer

When yields are expected to rise in the future, investors prefer not to hold long-term securities as the value of these securities decreases with the rise in yields. Therefore, option B, rise; not to hold, is the best choice.

When Yields Are Expected to __________ in the Future, Investors