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Suppose that your bank buys a T-bill yielding 4 percent that matures in six months and finances the purchase with the three-month time yeild deposit

Suppose that your bank buys a T-bill yielding 4 percent that matures in six months and finances the purchase with the three-month time yeild deposit paying 3 percent. The purchase price of the T-bill is $3 million financed with a $3 million deposit. Calculate the six-month GAP associated with this transaction.

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