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Posted on Sep 19, 2024

If interest rate hiked quickly, suppose you are a MBS investor and have to maintain a target range of duration to minimize market risk and

If interest rate hiked quickly, suppose you are a MBS investor and have to maintain a target range of duration to minimize market risk and match your liability as well, which of the following would you do to achieve the goal?

A. Long US Treasury

B. Long floating rate note

C. interest rate swap by paying fixed & receiving floating

D. interest rate swap by receiving fixed & paying floating

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