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undefined They both involve a claim on the issuer's income All of the above. Only A and B of the above, Question 10 8 pts
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They both involve a claim on the issuer's income All of the above. Only A and B of the above, Question 10 8 pts A bank has two, 3-year commercial loans with a present value of $95 million. The first is a $45 million loan that requ of $56.7 million in 3 years, with no other payments until then. The second is for $50 million. It requires an annual int The principal of $50 million is due in 3 years. 1. What is the duration of the bank's commercial loan portfolio to 2 decimal places? 2. What is the change in value of its portfolio to the nearest dollar if the general level of interest rates increased fro 86%? MacBook They both involve a claim on the issuer's income All of the above. Only A and B of the above, Question 10 8 pts A bank has two, 3-year commercial loans with a present value of $95 million. The first is a $45 million loan that requ of $56.7 million in 3 years, with no other payments until then. The second is for $50 million. It requires an annual int The principal of $50 million is due in 3 years. 1. What is the duration of the bank's commercial loan portfolio to 2 decimal places? 2. What is the change in value of its portfolio to the nearest dollar if the general level of interest rates increased fro 86%? MacBookStep by Step Solution
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