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Assume today is 4 May 2 0 1 0 and you intend to borrow using the 9 0 - day Bank Accepted Bills ( BAB

Assume today is 4 May 2010 and you intend to borrow using the 90-day Bank Accepted Bills (BAB) on 11 June 2010. You decide to take a position in the BAB futures contract to hedge the interest rate risk that you are likely to face between now and 11 June 2010. What is the nature of the interest rate risk you are likely to face, and how will you use the BAB futures contract to hedge that risk?

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