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Business, 15.04.2020 00:13 jessb9583

A bank with a two-year horizon has issued a one-year certificate of deposit for $60 million at an interest rate of 1 percent. With the proceeds, the bank has purchased a two-year Treasury note that pays 3 percent interest. What risk does the bank face in entering into these transactions?

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A bank with a two-year horizon has issued a one-year certificate of deposit for $60 million at an in...
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