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Carson Company may need to increase its production capacity by about 50 percent over the next few years to satisfy demand. It would need financing

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Carson Company may need to increase its production capacity by about 50 percent over the next few years to satisfy demand. It would need financing to expand and accommodate the increase in production. The yield curve is currently upward sloping, and Carson is concerned about a possible slowing of the economy because of potential Fed actions to reduce inflation. Carson currently relies mostly on commercial loans with floating interest rates for its debt financing. How could Carson use futures contracts to reduce the exposure of its future cost of debt to interest rate movements? Carson could buy Treasury bond futures contracts. Carson could buy Eurodollar futures contracts. Carson could sell oil futures contracts. Carson could sell Treasury bill futures contracts

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