If you are long a portfolio of investment grade corporate bond but want to eliminate your rate exposure?

Question

a. Buy an amount of Treasuries that is equal to the duration of your bonds

b. Sell an amount of Treasuries that is equal to the duration of your bonds

c. Sell an amount of Treasuries that is equal to the face value of your bonds

d. Buy an amount of Treasuries that is equal to the face value of your bonds

Answer 1

D.    But, diversify, dont stick just to bonds, unless you plan to retire soon. Look into stuff ike

Fidelity southeast china.. I have made a 26% average return in the last 4 years.

Fidelity Latin America.. 18% return

Fidelity Canada.  14% return.

So diverisfy adn do the research yourself, dont rely on stock brokers, they just want to sell you the flavor of the day($$ max their commissions)

my 2.5 cents.

Mike