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Commercial Banking and Finance Practice Question 2 There is no difference between duration and time to maturit y in managing financial intitutions interest rate risk

Commercial Banking and Finance

Practice Question 2

"There is no difference between duration and time to maturity in managing financial intitutions interest rate risk"

Critically analyse the statement given above with specific reference to how duration model can be used to immunise or protect a financial institution against interest rate risk. ( 10 Marks)

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