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The Harold Co. plans to issue 20-year bonds in 6 months to help finance a new project. The current cost of debt to the company
The Harold Co. plans to issue 20-year bonds in 6 months to help finance a new project. The current cost of debt to the company is9 percent.However, the company believes that interest rates will increasein the coming months.the company should consider entering into:
A long hedge because the value of futures contracts will fall
A long hedge because the value of futures contracts will rise
A short hedge because the value of futures contracts will fall.
A short hedge because the value of futures contracts will rise.
None of the above
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