BUS 405 Week 5 DQ1 Hedging with Futures
This file of BUS 405 Week 5 Discussion Question 1 Hedging with Futures comprises:
Complete Concept Question 7 from Chapter 14: The town of South Park is planning a bond issue in six months and Kenny, the town treasurer, is worried that interest rates may rise, thereby reducing the value of the bond issue. Should Kenny buy or sell Treasury bond futures contracts to hedge the impending bond issue? Remember to complete all parts of the question and support your answers with examples from the text and other resources.