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1- Describe risk exposures by filling out the Financial Transaction Risks Table1- Financial Transactions Risk Type Describe and justify risk type Interest Rate or Interest

1- Describe risk exposures by filling out the Financial Transaction Risks Table1-

Financial Transactions

Risk Type

Describe and justify risk type

Interest Rate or Interest Income?

A bank finances a $10 million, six-year fixed-rate commercial loan by selling one-year certificate of deposit.

An insurance company invests its policy premiums in a long-term municipal bond portfolio.

A French bank sells two-year fixed-rate notes to finance a two-year fixed-rate loan to a British entrepreneur.

A Japanese bank acquires an Austrian bank to facilitate clearing operations.

A bond dealer uses his own equity to buy Mexican debt on the less developed country (LDC) bond market.

A securities firm sells a package of mortgage loans as mortgage-backed securities.

Describe the features of the method you would choose to measure the interest risks identified.

2- Describe features you would choose to measure interest risks and identify which transactions are influenced by interest rates or income. Some are influenced by both.

Content

Met

Partially Met

Not Met

Comments:

Assesses what features you would choose to measure interest risks.

Analyzes which transactions are influenced by interest rates or income. Some are influenced by both.

The paper is 1,050- to 1,400-words in length.

Total Available

Total Earned

5

#/X

Writing Guidelines

Met

Partially Met

Not Met

Comments:

The paperincluding tables and graphs, headings, title page, and reference pageis consistent with APA formatting guidelines and meets course-level requirements.

Intellectual property is recognized with in-text citations and a reference page.

Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.

Sentences are complete, clear, and concise.

Rules of grammar and usage are followed including spelling and punctuation.

Total Available

Total Earned

2

#/X

Assignment Total

#

X

#/X

Additional comments:

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