"question 1: a bank with a two-year investment horizon has issued a one-year certificate of deposit for $50 million at an interest rate of 2 percent. with the proceeds, the bank has purchased a two-year treasury note that pays 4 percent interest. what risk does the bank face in entering into these transactions? what would happen if all interest rates were to rise by 1 percent? question 2: why do you think that u. s. banks are prohibited from holding equity as part of their own portfolios?"
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Category: geography |
Author: Mona Eva
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