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Risk sensitive assets are those assets which will reprice during a specified time period. We are told in the book that risk sensitive assets and
Risk sensitive assets are those assets which will reprice during a specified time period. We are told in the book that risk sensitive assets and liabilities are balance sheet entries. Therefore if you issue a mortgage loan of $ today with a ter. of years, and an interest rate of with monthly payments how much of the original $ will be seen as risk sensitive assets in a "time bucket" from this loan, defined as maturities greater than years and less than or equal to year Please enter your answer in the space provided to the nearest penny.
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