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315 QUESTION 18-HEDGING PORTFOLIO DURATION 316 317 (a) How does a portfolio manager use repurchase agreements or reverse repurchase agreements to increase the duration of

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315 QUESTION 18-HEDGING PORTFOLIO DURATION 316 317 (a) How does a portfolio manager use repurchase agreements or reverse repurchase agreements to increase the duration of the portfolio? Calculate the 318 duration if the portfolio manager purchases a bond with a duration of 5.4 and finances the purchase with a repo with a haircut of 5.0%. 319 320 321 322

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