Question 34 5 pts A commercial bank recognizes that its net income suffers whenever interest rates increase. Which of the following strategies would protect the bank against rising interest rates? Sell some of the bank's floating-rate loans and use the proceeds to make fixed-rate loans. Enter a short hedge where the bank agrees to sell interest rate futures. Purchase principal only (PO) strips that decline in value whenever interest rates rise. O Buying inverse floaters. Question 36 5 pts Which of the following statements about interest rate and reinvestment rate risk is CORRECT? Interest rate risk can never be reduced. Interest rate price risk can be eliminated by holding zero coupon bonds. O Reinvestment rate risk can be eliminated by holding variable for floating) rate bonds. Interest rate price risk exists because fixed-rate debt securities lose value when interest rates rise, while reinvestment rate risk is the risk of earning less than expected when interest payments or debt principal are reinvested. Question 37 5 pts