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A bank has a negative duration gap and wishes to hedge to use an interest rate swap to hedge its interest rate risk. The bank

A bank has a negative duration gap and wishes to hedge to use an interest rate swap to hedge its interest rate risk. The bank should

Pay a variable rate of interest and receive a fixed rate of interest

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

Pay a variable rate of interest and receive a variable rate of interest

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