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A bank is carrying liabilities with short duration on their Balance Sheet. (An example would be short term deposits). The bank wants to minimize the

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A bank is carrying liabilities with short duration on their Balance Sheet. (An example would be short term deposits). The bank wants to minimize the risk from interest rate changes, Assume that all of the yields on all of the following alternatives are the same, which investments would they prefer? 5 year term loans. adjustable rate mortgages conventional fixed rate mortgages 000 long term, coupon bonds long term, zero-coupon bonds

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