A commercial bank has fixed-rate long-term loans in its asset portfolio and variable-rate CDs in its liability

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A commercial bank has fixed-rate long-term loans in its asset portfolio and variable-rate CDs in its liability portfo- lio. Bank managers believe interest rates will increase in the future. What side of a fixed-floating rate swap would the commercial bank need to take to protect against this interest rate risk? (LG 10-7)

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Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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