Using an Interest Rate Swap, fully hedge a $100M bond portfolio. The portfolio has a duration of 7 years. The swap has

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answerhappygod
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Using an Interest Rate Swap, fully hedge a $100M bond portfolio. The portfolio has a duration of 7 years. The swap has

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Using an Interest Rate Swap, fully hedge a $100M bondportfolio. The portfolio has a duration of 7 years. Theswap has a duration of 3 years. Solve for the requiredNotional Principal of the swap.
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