Question
You are currently holding $1 million in long-term Treasury bonds and become concerned about increasing volatility in interest rates. You decide to hedge your risk
You are currently holding $1 million in long-term Treasury bonds and become concerned about increasing volatility in interest rates. You decide to hedge your risk by using Treasury bond futures contracts. Should you buy or sell such contracts, and why?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
