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Q. 4: (Marks: 3) A bank intends to borrow R500 million by issuing fixed deposits with 90 -day maturities and the relevant intere rate is

image text in transcribed Q. 4: (Marks: 3) A bank intends to borrow R500 million by issuing fixed deposits with 90 -day maturities and the relevant intere rate is 9 percent. If it is forecasted that interest rates would rise by 50 basis points, calculate the interest rate risk on these deposits

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