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Question 6 (5 points) 2. You are an investment manager and see an opportunity to lend $9,000,000 to Acme Industries in 7 months, when they

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Question 6 (5 points) 2. You are an investment manager and see an opportunity to lend $9,000,000 to Acme Industries in 7 months, when they require the funds. The loan will be for a 10 year term, and the interest rate will be set in 7 months when the loan is finalized. You are concerned that interest rates may fall over the next 7 months. Should you buy or sell 10 year bond futures in order to hedge yourself? Briefly explain your logic. (5 Marks) oo Format V BI U U ... EQ 3 Add a File Record Audio Record Video Question 7 (2 points) 2. Suppose the exchange rate between Canadian dollars and Swiss francs is SF 1.10 - $1.00, and the exchange rate between the Canadian dollar and the euro is $1.00 -0,66 euros, What is the cross rate ot Swiss francs to cry Question 6 (5 points) 2. You are an investment manager and see an opportunity to lend $9,000,000 to Acme Industries in 7 months, when they require the funds. The loan will be for a 10 year term, and the interest rate will be set in 7 months when the loan is finalized. You are concerned that interest rates may fall over the next 7 months. Should you buy or sell 10 year bond futures in order to hedge yourself? Briefly explain your logic. (5 Marks) oo Format V BI U U ... EQ 3 Add a File Record Audio Record Video Question 7 (2 points) 2. Suppose the exchange rate between Canadian dollars and Swiss francs is SF 1.10 - $1.00, and the exchange rate between the Canadian dollar and the euro is $1.00 -0,66 euros, What is the cross rate ot Swiss francs to cry

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