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A financial institution that maintains some Treasury bond holdings sells Treasury bond futures contracts. If interest rates decrease, the market value of the bond holdings

A financial institution that maintains some Treasury bond holdings sells Treasury bond futures contracts. If interest rates decrease, the market value of the bond holdings will ____ and the position in futures contracts will result in a ____.

a. increase; gain

b. increase; loss

c. decrease; gain

d. decrease; loss

e. not change; gain

f. not change; loss

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