As a treasurer of the company, you wish to issue $40 million of 10-year bonds. You believe

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As a treasurer of the company, you wish to issue $40 million of 10-year bonds. You believe it will take three months before the issue can be floated and that interest rates will rise. You wish to lock in today’s rates. Discuss how this can be done using futures contracts.
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Modern Portfolio Theory and Investment Analysis

ISBN: 978-1118469941

9th edition

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

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