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I wanted to discuss this question. I don't think the answer specified is correct. If the peering was going to be via the loopback IPs then two things would be required:

a) A static route to the loopback IPs on the opposing router
b) EBGP multihop to allow peering via loopback.


Neither of these are shown in this configuration. 

My gut feel is the answer should be the peering on the 10.24.24. addresses with the update source command for looopback?

What are peoples thoughts on this?


Thanks