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Hope to get tutor's guidance 1Bond S and Bond L are both issued by the same company. Bond S has a term to maturity of

Hope to get tutor's guidance

1Bond S and Bond L are both issued by the same company. Bond S has a term to

maturity of 3 years whereas Bond L has a term to maturity of 6 years. Compare their yields.

Justify your comparison

2you are holding an Australian stock portfolio. You are afraid that the Australian stock market will decline in three months. Compare and contrast the use of options and futures contracts for hedging in this case.

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