25. If the Friendly Finance Company raises an addi- tional $20 million with commercial paper and uses
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25. If the Friendly Finance Company raises an addi- tional $20 million with commercial paper and uses the funds to make $20 million of consumer loans that mature in less than one year, what happens to its interest-rate risk? In this situation, what addi- tional changes could it make in its balance sheet to eliminate the income gap?
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Related Book For
Financial Markets and Institutions
ISBN: 978-0321280299
5th edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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