2008 Essay Question

If you expect the interest rate decline and the interest rate spread widen in the near future, and you take the following action: buy 7 year Ba2/BB industrial corporate bonds; Sell 7-year Baa3/BBB industrial coporate bonds. will the expected effect on the portfolio’s value over the next two weeks for each potential trade be -ve or +ve? and provide ur reasons.

Can you post the q # so that I can look it up

Answer sounds OK for me. What is your question?