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You are the CEO of a pension fund plan. Suppose that the pension fund plan you are managing is expecting an inflow of funds of
You are the CEO of a pension fund plan. Suppose that the pension fund plan you are managing is expecting an inflow of funds of $100 million next year and you want to make sure that you will earn the current interest rate of 4% when you invest the incoming funds in long-term bonds. How would you use the financial derivative markets to do this?
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