Mr. Aiman, Treasurer of AJ Finance Berhad, has just completed a Maturity Bucket Analysis based on the a 6-month horizon. (This question requires material discussed in Appendix 1).

Month	1	2	3	4	5	6	Total
RSA (RM million)	44	168	160	120	144	240	876
RSL (RM million)	52	160	220	120	128	170	850
GAP (RM million)	-8	+8	-60	0	+16	+70	+26

a) If the market expectation is increase in interest rates, find the maturity bucket should Mr. Aiman, worries most about. Explain why the particular bucket matters.

(5 marks)

b) Outline an appropriate hedge strategy for Mr. Aiman,.

(5 marks)