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Suppose James is managing a portfolio consisting of T-notes. He is concerned of possible bond price decline due to interest rate increase in future. To

Suppose James is managing a portfolio consisting of T-notes. He is concerned of possible bond price decline due to interest rate increase in future. To protect against the potential loss, he should short T-note futures today.

True

False

When Fed Funds rate is expected to rise, then the Fed Funds futures price will also increase.

True

False

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