Question
In each of the following cases, identify what direction of interest rate risk the manager of HRB Bank faces (ie rising or falling interest rates).
In each of the following cases, identify what direction of interest rate risk the manager of HRB Bank faces (ie rising or falling interest rates).
(i) HRB bank plans to issue CDs in three months. (ii) HRB plans to buy bonds in two months. (iii) The bank plans to sell Treasury securities next month. (iv) HRB has assets with duration of 4 years and liabilities with duration of 6 years.
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Lessons In Corporate Finance
Authors: Paul Asquith, Lawrence A. Weiss
2nd Edition
1119537835, 978-1119537830
