Question: Explain how you would hedge a short position in a 5-year zero-coupon bond using a portfolio of 1 -year zeros and 10-year zeros if the

Explain how you would hedge a short position in a 5-year

Explain how you would hedge a short position in a 5-year zero-coupon bond using a portfolio of 1 -year zeros and 10-year zeros if the yield curve is normal as shown below. Would you experience gains or losses from this hedging strategy if the yield curve twists as shown below

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