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For a bank that has floating rate assets yielding L+50 and can issue fixed rate debt at T + 20 and floating at L +

  1. For a bank that has floating rate assets yielding L+50 and can issue fixed rate debt at T + 20 and floating at L + 45, with a swap spread at 10 bp, the best net margin (asset liability) that can be achieved is:

    A.

    30 bp

    B.

    40 bp

    C.

    5 bp

    D.

    25 bp

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