Referring to Ibahn's second response to Palme, the levered portfolio would have:
A. the same duration if either the overnight repo or the 2-year term repo is used.
B. a longer duration if the overnight repo is used instead of the 2-year term repo.
C. a shorter duration if the overnight repo is used instead of the 2-year term repo.
Ans: B. a longer duration if the overnight repo is used instead of the 2-year term repo.
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