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Ch2-Q60. According to today's yield curve, the market's forecast of the one-year Treasury bond rate one year in the future is 5.2%. A bank needs

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Ch2-Q60. According to today's yield curve, the market's forecast of the one-year Treasury bond rate one year in the future is 5.2%. A bank needs to charge 2% more than the expected interest rate on a Treasury bond with the same maturity to be profitable. If a customer asks the bank if it would be willing to commit to making the customer a one-year loan at an interest rate 8% one year from now, should the bank be willing to make the commitment? The bank should make the loan because 8% loan is higher than the market expectation 5.2%. The bank should make the loan because it can make 0.8% profit. We don't have enough information to make the decision. The bank should not make the loan because it would lose to lend

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