1. If you purchased the bond at par and sold the futures contract, what would be the...

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1. If you purchased the bond at par and sold the futures contract, what would be the net value of your hedge after the increase in interest rates?

What are the differences between a microhedge and a macrohedge for an FI?

Why is it generally more efficient for FIs to employ a macrohedge than a series of microhedges?

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