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Consider the following Balance Sheet related data for Kairful Finance Corp. (KFC), a Canadian schedule B bank. Required (3 parts): If interest rates are currently
Consider the following Balance Sheet related data for Kairful Finance Corp. (KFC), a Canadian schedule B bank. Required (3 parts): If interest rates are currently 2% but increase to 4%, how much will KFC's equity change by (approximately)? Use the duation ralrulatione th rompun with unr answar 12 markel KFC is considering managing its interest rate risk and achieving a duration neutral position. Assume it has the ability to buy or sell 10 year zero coupon bonds. What dollar value of these bonds should it buy or sell to achieve its desired duration neutral position? (2 marks)
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