1. What do you think is the most important overall measure of the performance of
bond markets? (5 marks)
2. Which fixed-income investment strategies, (out of the many fixed income
investment strategies out there) would you give as advice to fixed income
investors in the face of the bond market decline described in this article? [This
requires you to identify, give brief description of each, and then justify your pick]
(30 marks)
3. Give a balanced argument on whether ‘diversification’ is the antidote in the face
of a bond market crisis such as this?