Question 2 9.8 pts Suppose that ABS A pays a floating rate of interest equal to LIBOR plus 20 basis points to its bondholders. The ABS is backed by collateral paying a 3.5% fixed rate of interest. Suppose further that ABS B pays a fixed rate of interest of 3% to its bondholders and is backed by collateral paying LIBOR + 80 basis points Which of the following describes the risk faced by ABS A? Read the question carefully. If you take the quiz multiple times, in different attempts you may get a version asking about the other ABS or an entirely different set of parameters. ABS A needs to find a floating rate liability to offset its floating rate asset. None of the other answers are correct. If LIBOR rises above 3.3%, ABS A loses money. If LIBOR falls below 2.7%, ABS A loses money. O If LIBOR falls below 3.3%, ABS A loses money