n NISM Certifications
XIII NISM Series XIII
Medium

When interest rates are expected to fall, an investor might prefer to:

Practice question from NISM Series XIII for SIF - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Buy long-term bonds

  2. B

    Buy short-term bonds

  3. Invest in interest rate derivatives to hedge

    Correct answer

  4. D

    Sell bonds immediately

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

Test yourself for real

Take a full NISM Series XIII mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.