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Saunders Chapter 08 All assets and liabilities are currently priced at par and pay interest annually. Assets Amount Annual Rate Liabilities Amount Annual Rate S

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Saunders Chapter 08 All assets and liabilities are currently priced at par and pay interest annually. Assets Amount Annual Rate Liabilities Amount Annual Rate S millions) S60 $40 1-year CD 2-year CD Equity Total (S millions) S50 S40 S10 $100 1-vear bonds 10-vear loan 500 12% Total $100

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