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FNMA has direct holdings of 30-year fixed-rate mortgages financed by 3- to 5-year agency securities sold to the public. (a) What kind of interest rate

FNMA has direct holdings of 30-year fixed-rate mortgages financed by 3- to 5-year agency securities sold to the public. (a) What kind of interest rate swap could FNMA use to limit their interest rate risk? Explain.

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