1. Under a laddering approach, investors can mitigate the effects of an increase in interest rates by
purchasing bonds with the same maturity dates and selling short bonds with other maturity dates
purchasing bonds with the same maturity date but different coupon rates
purchasing bonds with different maturity dates
purchasing bonds with different yield to maturity
2. An investor has three sources of dollar returns from a bond investment. Which of the following is NOT included among the three sources
The semi-annual coupon payments
The interest earned on reinvesting the coupon payments
The principal paid at maturity
The interest earned on reinvesting the last coupon and the principal