Galvani, Valentina; Landon, Stuart - In: Review of Quantitative Finance and Accounting 40 (2013) 1, pp. 135-154
The average return on long-term bonds exceeds the return on short-term bills by a large amount over short investment horizons. A riding-the-yield-curve investment strategy takes advantage of the higher returns on longer term bonds. This strategy involves the purchase of bonds with maturities...