Question
You buy a fixed rate bond of a Fortune 500 company. Using derivatives, you want to hedge your exposure to (i) interest rate risk and
You buy a fixed rate bond of a Fortune 500 company. Using derivatives, you want to hedge your exposure to (i) interest rate risk and (ii) credit risk. Which types of derivatives would you use? In your answer, explain how each derivative works.
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
