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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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