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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

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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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