Firm can hedge its interest rate risk on short-term fixed

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Reference no: EM131554067

How a firm can hedge its interest rate risk on a short-term fixed or variable rate bank loan or on a fixed or variable rate short-term investment using the interest rate futures market. Be able to explain how there is a gain or loss if a firm with a variable rate bank loan expects interest rates to rise and attempts to hedge this expected interest rate risk in the interest rate futures market.

Reference no: EM131554067

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