Are the following assets rate sensitive within a six- month time frame? Explain. a. Three- month T-
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a. Three- month T- bill
b. Federal funds sold (daily repricing)
c. Two- year Treasury bond with semiannual coupon payments
d. Four- year fully amortized car loan with $ 350 monthly payments including both principal and interest (for the first six months, principal payments total $ 448)
e. Commercial loan priced at the bank’s prime rate plus 2 percent Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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Rate sensitive assets a Yes matures b Yes matures daily c No principa...View the full answer
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