Question
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. |
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An insurance company invests its policy premiums in a long-term municipal bond portfolio. |
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A French bank sells two-year fixed-rate notes to finance a two-year fixed-rate loan to a British entrepreneur. |
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A Japanese bank acquires an Austrian bank to facilitate clearing operations. |
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A bond dealer uses his own equity to buy Mexican debt on the less developed country (LDC) bond market. |
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A securities firm sells a package of mortgage loans as mortgage-backed securities. |
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Describe the features of the method you would choose to measure the interest risks identified.
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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
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| Partially Met | Not Met
| Comments: |
Assesses what features you would choose to measure interest risks. |
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Analyzes which transactions are influenced by interest rates or income. Some are influenced by both. |
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The paper is 1,050- to 1,400-words in length. |
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| Total Available | Total Earned |
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| 5 | #/X |
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Writing Guidelines
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| 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. |
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Intellectual property is recognized with in-text citations and a reference page. |
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Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper. |
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Sentences are complete, clear, and concise. |
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Rules of grammar and usage are followed including spelling and punctuation. |
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| Total Available | Total Earned |
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| 2 | #/X |
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Assignment Total | # | X | #/X |
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Additional comments:
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