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Securities A, B, and have the following cash flows: (Ignore taxes) Year 1 $ 60 140 30 Year 2 $60 Year 3 $ 60 C 30 130 a. Calculate their durations if the interest rate is 8%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Durations Securities A years years B years b. Suppose that you have an investment of $12.0 million in A. What combination of B and C would hedge this investment against interest rate changes? (Enter your numeric answers as a positive value. Do not round intermediate calculations. Enter your numeric answers in millions rounded to 3 decimal places.) Securities Position Amount B million million c. Now suppose that you have a $12.0 million investment in B. How would you hedge? (Enter your numeric answers as a positive value. Do not round intermediate calculations. Enter your numeric answers in millions rounded to 3 decimal places.) Securities Position Amount A million million Securities A, B, and have the following cash flows: (Ignore taxes) Year 1 $ 60 140 30 Year 2 $60 Year 3 $ 60 C 30 130 a. Calculate their durations if the interest rate is 8%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Durations Securities A years years B years b. Suppose that you have an investment of $12.0 million in A. What combination of B and C would hedge this investment against interest rate changes? (Enter your numeric answers as a positive value. Do not round intermediate calculations. Enter your numeric answers in millions rounded to 3 decimal places.) Securities Position Amount B million million c. Now suppose that you have a $12.0 million investment in B. How would you hedge? (Enter your numeric answers as a positive value. Do not round intermediate calculations. Enter your numeric answers in millions rounded to 3 decimal places.) Securities Position Amount A million million

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