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QUESTION 2 ( b ) ( i ) [ 5 marks ] Using the yield curve ( depicted below, ) discuss the net interest margin
QUESTION bi marks
Using the yield curve depicted below, discuss the net interest margin given that a fiveyear loan is financed by rolling over the oneyear certificate of deposits. You should discuss and label the relevant risks that are experienced by the bank with this profile. Does the shape of the yield curve approximate the expected yield curve for the current Singapore market?
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