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Question 16 5 pts A commercial bank tends to have long-term illiquid assets funded by short-term liabilities. To protect the equity value of the bank,
Question 16 5 pts A commercial bank tends to have long-term illiquid assets funded by short-term liabilities. To protect the equity value of the bank, a risk manager may engage in which of the following? A SWAP contract to pay floating and receive a fixed rate. Buying a cap on interest rates. Buy futures contracts on Treasury bonds.. O None of the above
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