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Suppose that Bank C is offering the following deposit and mortgage rates to their customers: Maturity 1 year 5 years Deposit rate 4% 2% Mortgage

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Suppose that Bank C is offering the following deposit and mortgage rates to their customers: Maturity 1 year 5 years Deposit rate 4% 2% Mortgage rate 6% 5% Assess the bank's interest rate risk when interest rates increase by 3% for the first two years and discuss a strategy to eliminate the risk if any

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