Question: Freda will need to issue ten-year bonds in four-months time. She is most exposed to: a. short-term interest rates rising. b. long-term interest rates rising.

Freda will need to issue ten-year bonds in four-months time. She is most exposed to:

a. short-term interest rates rising.

b. long-term interest rates rising.

c. short-term interest rates falling.

d. long-term interest rates falling.

e. a ratio hedge of short- to long-term interest rates.

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