Course Name: Accounting of Financial Institutions , no handwriting or pictures , be clear and explain answers, this is whole question , answer it or leave it to another person who can answer it ,

3) There are two alternative views of interest rate risk. Under the first view interest is defined as the variability of the value of a financial instrument and under the second view as the variability of the cash flows of a financial instrument. Explain these view with numerical examples. (2.5 Marks) 150 words