Expected spot rates

CFA Level II Fixed Income
#1

hi . Can someone pls help me with this question

An active bond portfolio manager would most appropriately buy bonds when expected spot rates are:

A) greater than current forward rates.
B) less than current forward rates.
C) equal to current forward rates.

I don’t understand why the and is B. Because if my future spot rates are lower, the price would be high. Why would I buy a bond when the price is high?

Thanks!

#2

The question to ask is, “When will the price be high: today, or in the future?”

#3

my bad. Thank you

#4

My pleasure.