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    Exam 9: Derivatives: Futures, Options, and Swaps
  5. Question
    Explain How an Interest Rate Futures Contract Differs from an Outright
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Explain How an Interest Rate Futures Contract Differs from an Outright

Question 21

Question 21

Essay

Explain how an interest rate futures contract differs from an outright purchase of a bond.

Correct Answer:

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An investor who purchases a bond does so...

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