A cross hedge uses the same form of security to hedge against potential rate changes, even though there may be different maturity dates in the securities.

Name: A cross hedge uses the same form of security to hedge against potential rate changes, even though there may be different maturity dates in the securities.
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Question

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Cross-hedging uses one form of security (Treasury bonds) to hedge another form of security (corporate bonds).

A Cross Hedge Uses the Same Form of Security to Hedge