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A bank has $25,000,000 in junior subordinated notes coming due, and it has decided to redeem them. They find that they don't have cash on
A bank has $25,000,000 in junior subordinated notes coming due, and it has decided to redeem them. They find that they don't have cash on hand to do so, so they place some assets for sale, including their headquarters building, which they plan to then lease back. This is an example of:
a.Solvency risk
b.Liquidity risk
c.Deposit risk
d.Funding risk
e.Interest rate risk
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