A client tells you that he strongly believes that interest rates will fall abruptly over the next six months. He asks you to recommend bonds for a portfolio to provide capital gains on the interest rate move. Generally, what would you suggest? What if he expected rates to rise? How would your answer be impacted if the yield curve has a steep downward slope?

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The Answer of A client tells you that he strongly believes that interest rates will fall abruptly over the next six months. He asks you to recommend bonds for a portfolio to provide capital gains on the interest rate move. Generally, what would you suggest? What if he expected rates to rise? How would your answer be impacted if the yield curve has a steep downward slope?

A Client Tells You That He Strongly Believes That Interest