1 explain why it is necessary to know the dollar duration, Ask an Expert

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1. Explain why it is necessary to know the dollar duration of the underlying in order to hedge.

2. One of the problems in liability-driven investing when using cash market Treasuries for hedging interest-rate risk is that the duration will produce a dollar duration that does not match that of the liability dollar duration. Explain how the ultra-Treasury bond futures contract may help resolve this problem.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91617706

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