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FNMA has direct holdings of 30-year fixed-rate mortgages financed by three- to five-year agency securities sold to the public. What kind of interest rate option

FNMA has direct holdings of 30-year fixed-rate mortgages financed by three- to five-year agency securities sold to the public. What kind of interest rate option could FNMA use to limit the interest rate risk? Explain how this would work. Explain how a collar could also be used.

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