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es Securities A, B, and C have the following cash flows: (Ignore taxes) Year 2 Year 3 $ 52 $ 52 A B C Year

es Securities A, B, and C have the following cash flows: (Ignore taxes) Year 2 Year 3 $ 52 $ 52 A B C Year 1 $ 52 132 22 22 122 a. Calculate their durations if the interest rate is 10%. b. Suppose that you have an investment of $11.2 million in A. What combination of B and C would hedge this investment against interest rate changes? c. Now suppose that you have a $11.2 million investment in B. How would you hedge? Complete this question by entering your answers in the tabs below. Required A Required B Required C Securities A B Calculate their durations if the interest rate is 10%. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Durations As years years

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