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A bank has liabilities with short durations (such as short term deposits). If the bank wishes to minimize interest rate risk and if the yields

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A bank has liabilities with short durations (such as short term deposits). If the bank wishes to minimize interest rate risk and if the yields on all of the alternatives are the same, which investments would they prefer? 5 year term loans adjustable rate mortgages conventional foxed rate mortgages long term, coupon bonds long term zero-coupon bonds

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