According to your text, a practical use of the yield curve employed frequently by dealers in United States Government securities is:
A) Detecting overpriced and underpriced securities
B) Forecasting interest rates
C) Riding the yield curve
D) Calculating the trade-off between yield and maturity
E) None of the above

Question

Quizplus · Accepted Answer

Riding the yield curve is a strategy used by dealers in government securities to take advantage of the yield curve's shape to earn a profit by holding longer-term securities and selling them before maturity.

According to Your Text, a Practical Use of the Yield