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If a firms assets have a duration of 5 years and its liabilities have a duration of 3 years, then if interest rates decrease Group
If a firms assets have a duration of 5 years and its liabilities have a duration of 3 years, then if interest rates decrease
Group of answer choices
the value of the assets will increase
the value of the liabilities will decrease
the net worth will decrease
a and b
a, b and c
Suppose a dealer plans to hedge a long position in Treasury bonds. She would need to
Group of answer choices
go long T-bond futures contracts
purchase shorter-term bonds
short T-bond futures contracts
purchase longer-term bonds
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