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Determine the notional principal of this swap

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Question - A portfolio has a value of US$50m and a DV01 of -US$30,000. A swap with the same underlying interest rate risk with a notional principal US$25m will have a DV01 of US$10,000. Determine the notional principal of this swap that is required to minimise the interest rate risk on the portfolio?

A. $75M

B. $25M

C. $50M

D. $10M

Reference no: EM133151349

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