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Now suppose a financial institution has a duration gap of -4 years and $10 million in assets. The cheapest to deliver bond for Treasury futures

Now suppose a financial institution has a duration gap of -4 years and $10 million in assets. The cheapest to deliver bond for Treasury futures contracts has a duration of 3 years. How will the manager hedge this interest rate risk? Assume the cheapest to deliver bond is trading at par.

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