You manage a pension plan with $100 million in assets that have a duration of 12 years and $200 million in liabilities with a duration of 24 years. Calculate your duration gap Are you hurt if interest rates go up, or if they go down?

Suppose you want to execute a macro hedge using T-bond futures contracts traded on the CBOT. Do you want to go short or long?

Suppose that the cheapest to deliver bond has a duration of 25.3 years. How many contracts will you short/long if you want to hedge your position as completely as possible?