Assume the three hedging securities: a 2-year, 5-year and 10-year bond. The maturities correspond to the three key rates at 2, 5 and 10 years. The key rate '01 (KRO1) for the bonds are given in the table below, and they are reported per $100 face value. The KRO1s of the underlying portfolio are given below (but they are reported for the face amount). **Key Rate 01s (per $100 Face)** | Hedging Securities | 2-year | 5-year | 10-year | |--------------------|--------|--------|---------| | 2-year bond | 0.010 | | | | 5-year bond | 0.010 | 0.040 | | | 10-year bond | 0.010 | 0.050 | 0.100 | **Key Rate 01s ($)** | Underlying Portfolio | 2-year | 5-year | 10-year | |----------------------|--------|--------|---------| | | 20.0 | 60.0 | 100.0 | What is the face value of the two year (2-year) hedging bond that is required? | Financial Risk Manager Part 1 Quiz - LeetQuiz