Which of the following statements is correct?

a.

Routine hedging will allow the FI to achieve a greater return from the assets and liabilities on the balance sheet.

b.

All bonds that are deliverable under a Treasury bond futures contract have a maturity of 20 years and an interest rate of 8 percent.

c.

Macrohedging uses a derivative contract, such as a futures or forward contract, to hedge a particular asset or liability risk.

d.

Microhedging uses futures or forward contracts to hedge the entire balance sheet duration gap.

e.

Selective hedging occurs by reducing the interest rate risk by selling sufficient futures contracts to offset the interest rate risk exposure of a portion of the positions on the balance sheet.