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A pension fund will receive a large cash flow next month that it plans to invest in long-term Treasury bonds. It is concerned that interest
A pension fund will receive a large cash flow next month that it plans to invest in long-term Treasury bonds. It is concerned that interest rate may fall by the time it can make the investment and would like to lock in the yield currently available on long-term issues. To hedge their exposure to this interest rate uncertainty, the fund can
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