The fixed-income manager strategy of interest rate anticipation or duration switching tends to work best when:
a) interest rates are low
b) interest rates are high
c) the yield curve is flat
d) the yield curve is normal
第16题答案是D。题目中说yield curve is normal – when there is a wide gap between short-term and long-term rates. If the yield curve is flat, it is not advantageous to extend the term to maturity of portfolio. Interest rate anticipation是指manger moves funds from one end of yield curve to the other in anticipation of interest rate changes.