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13. As the corporate treasurer of a major corporation, you envision that the firm will have to borrow $125 million in three months' time. a.
13. As the corporate treasurer of a major corporation, you envision that the firm will have to borrow $125 million in three months' time. a. How could you use a Treasury bond futures contract to hedge against increased interest rates over the next quarter? Why might this approach not work as a perfect hedge? b. 14. What are the difficulties in pricing a Treasury bond futures contract
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