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

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

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