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1 pts Question 27 Consider the following balance sheet (expressed in millions of dollars: Assets:...

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1 pts Question 27 Consider the following balance sheet (expressed in millions of dollars: Assets: 850 (8 years modified duration) Liabilities: 725 in borrowed funds (4 years - modified duration) 125 in Equity How would you hedge this balance sheet against a 1% increase in interest rates using an interest rate swap with a fixed rate payment with a modified duration of 6 years and a floating rate payment with a modified duration of 3 years? Receive fixed pay floating, NP - 975 O Receive floating pay fixed, NP - 975 O Receive floating pay fixed, NP = 780 O Receive fixed pay floating. NP - 780 Receive floating pay fixed, NP = 1,300

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