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A bank has acquired an interest rate cap at 4.25%. The notional amount of the upcoming. pending loan to the bank is $10 million. What

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A bank has acquired an interest rate cap at 4.25%. The notional amount of the upcoming. pending loan to the bank is $10 million. What is the amount of the gain or loss to the bank if the market interest rate reaches 4.75% at the time the loan is executed

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