After conducting a rate-sensitive analysis, a bank finds itself with the following amounts of rate-sensitive assets and liabilities (RSAs and RSLs) and fixed-rate assets and liabilities (FRAs and FRLs). The rate of return and cost rates on the accounts are also given in the following table:

Assets	Amount (million $)	Liabilities & Equity	Amount (million $)
RSAs @ 4.25%	$ 322	RSLs @ 3.11%	$ 200
FRAs @ 5.15%	$ 700	FRLs @ 4.95%	$ 800
NEA	$ 120	Equity	$ 142
Total	$ 1,142	Total	$ 1,142

If the bank wishes to set up a swap to totally hedge the interest rate risk, the bank should:

pay a fixed rate of interest and receive a variable rate of interest.

pay a fixed rate of interest and receive a fixed rate of interest. (correct lol)

pay a variable rate of interest and receive a fixed rate of interest.

pay a variable rate of interest and receive a variable rate of interest.

None of the options are correct.