Assets Liabilities 250 million 5-year note, c=5%, semi 350 million 0.5-year note, c=25bps, semi 150 million 3-year note, c=3%, semi Book Value of Equity = 50 million 3. You are asked to reduce the dollar duration gap to no more than 50bps of the asset size by using a plain-vanilla interest rate swap. You are free to choose the swap maturity. The swap rates can be obtained from Bloombergs {USSW} and the swap market discount factors from {SWPM}. The 10 year swap rate is 1.767%