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Assume SVB, a bank, owns a bunch of 20 year Treasury bonds purchased in April 2020 when interest rates were near zero. A) What has

Assume SVB, a bank, owns a bunch of 20 year Treasury bonds purchased in April 2020 when

interest rates were near zero.

A) What has been happening to the value of these bonds as interest rates have risen sharply over

the past year?

B) Might this be a problem for SVB? Explain

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