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A large company is planning on issuing a 10-year bond in 6 months. Current interest rates are attractive and the company is concerned that rates
A large company is planning on issuing a 10-year bond in 6 months. Current interest rates are attractive and the company is concerned that rates will rise prior to issuing the bond. Recommend a hedging strategy the company should implement and how the hedge would work. Identify another risk(s) the company might face associated with this issue that is more difficult to hedge.
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