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This Question have two parts(5 Marks) Assume a bank's rate sensitive assets are $200 million and rate sensitive liabilities are $100 million for one-year cumulative

This Question have two parts(5 Marks)

Assume a bank's rate sensitive assets are $200 million and rate sensitive liabilities are $100 million for one-year cumulative period, what is the interest rate risk face by the bank? (2 marks)

Briefly discuss weaknesses of the repricing model? (3 marks)

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