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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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