Question: 12 . Suppose DA = 7, DL = 5, k = .12, and A = $100 million. Also, assume the duration of a current 10-year,
12 . Suppose DA = 7, DL = 5, k = .12, and A = $100 million. Also, assume the duration of a current 10-year, fixed- rate T-bond with the same coupon as the fixed rate on the swap is ten years, while ...
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