25. Suppose a bank has an income gap of million. How can this bank use interest-rate swaps...

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25. Suppose a bank has an income gap of million. How can this bank use interest-rate swaps to hedge against interest rate increases? Determine the amount of the notional principal and propose an interest rate swap.

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Financial Markets And Institutions

ISBN: 9780134519265

9th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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