You manage a portfolio of bonds on behalf of wealthy investors with maturities spread across the yield curve from three months to ten years. You have received highly regarded advice that suggests changes to medium and long term interest rates which will have an adverse impact on the value of the portfolio. Which one of the following actions will best hedge the impact of such an adverse change on the portfolio? [Note: assume ten year bond futures and ten year swaps]

	A.	Buy futures and negotiate a swap where you pay fixed and receive floating.
	B.	Buy futures and negotiate a swap where you receive fixed and pay floating.
	C.	Sell futures and negotiate a swap where you receive fixed and pay floating.
	D.	Sell futures and increase the weighting of long-term bonds in the portfolio.
	E.	Sell futures and negotiate a swap where you pay fixed and receive floating.