Homework Clinic
Social Science Clinic => Business => Finance => Topic started by: nanna on Mar 29, 2022
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Question 1
To hedge a bond portfolio against rising interest rates, an investor should
◦ sell interest rate futures.
◦ buy a stock-index future.
◦ buy Treasury Notes.
◦ buy interest rate futures.
Question 2
To hedge a bond portfolio, an investor should use
◦ a foreign-currency future.
◦ a stock-index future.
◦ a certificate of deposit.
◦ an interest rate future.
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Answer 1
sell interest rate futures.
Answer 2
an interest rate future.