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Suppose a financial institution has a duration gap of -5 years and $10 million in assets. The cheapest to deliver bond for Treasury futures contracts

Suppose a financial institution has a duration gap of -5 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 (futures contracts have a par value of $100,000).

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