A derivatives trader at an investment bank is considering how to hedge a relatively illiquid 7-year USD interest-rate swap the bank just entered into as the fixed-rate payer. The trader recognizes that any profit resulting from the bid-ask spread may be lost if the trade is hedged with another illiquid 7-year swap and considers using the more liquid 5-year and 10-year USD interest-rate swaps as a hedge. To evaluate this possible hedge, the trader runs a two-variable regression model using changes in the 5-year and 10-year swap rates to explain changes in the 7-year swap rate. The regression model, regression results, and information about the swaps are given below:

$\Delta y_t^7 = \alpha + \beta^5 \Delta y_t^5 + \beta^{10} \Delta y_t^{10} + \varepsilon_t$

| Number of observations | 1255 |

|------------------------|------|

| R-squared | 98.1% |

| Standard error | 0.12 |

| Regression coefficients | Value | Standard error |

|-------------------------|---------|----------------|

| Constant (α) | 0.0012 | 0.0030 |

| Change in 5-year swap rate (β⁵) | 0.2471 | 0.0025 |

| Change in 10-year swap rate (β¹⁰) | 0.6536 | 0.0027 |

| Swap tenor | Swap fixed rate | DV01 |

|------------|-----------------|------|

| 5-year | 2.591% | 0.061 |

| 7-year | 2.492% | 0.084 |

| 10-year | 2.475% | 0.115 |

What are the correct notional amounts of 5-year and 10-year swaps needed to hedge a USD 100 million notional amount of 7-year swaps?