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Consider the following balance sheet: Assets: 950 (10 years = modified duration) Liabilities: 860 in borrowed funds (2 years = modified duration) 90 in Equity

Consider the following balance sheet: Assets: 950 (10 years = modified duration) Liabilities: 860 in borrowed funds (2 years = modified duration) 90 in Equity Show how to hedge this balance sheet agai...

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