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Interest rate risk is one of the problems faced by most of the commercial banks. (i) Define and explain the development of interest rate risk

Interest rate risk is one of the problems faced by most of the commercial banks.

(i) Define and explain the development of interest rate risk management. (3 marks)

(ii) Discuss and explain the measurement model or technique that is used to measure the interest rate risk. (6 marks)

(iv) Discuss TWO hedging techniques for interest rate risk encountered by financial institution. (6 marks)

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