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Suppose DA = 7, DL = 5, k = .12, and A = $100 million. Also, assume the duration of a current 10-year, fixed-rate T-bond

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Suppose DA = 7, DL = 5, k = .12, and A = $100 million. Also, assume the duration of a current 10-year, fixed-rate T-bond with the same coupon as the fixed rate on the swap is ten years, while the duration of a floating-rate bond that reprices annually is two year: slide 14 of chapter 25 what is the notional value of the swap

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