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INTEREST RATES= INFLATION PREMIUM + Compensation for risk free rate ( T Bill Rate ) of return + specific risk premium compensation ( Default Risk,

INTEREST RATES= INFLATION PREMIUM + Compensation for risk free rate ( T Bill Rate ) of return + specific risk premium compensation ( Default Risk, Liquidity Risk, Maturity Risk, Opportunity risk, etc).

compare and contrast the various methods used by banks to assess interest rate risk to their net interest rate margin?

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