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West National Bank make the following interest rate collar: 10 millions, 9.7% interest rate cap with a price of 1.3% of face value 10 millions,

West National Bank make the following interest rate collar: 10 millions, 9.7% interest rate cap with a price of 1.3% of face value 10 millions, 3.45% interest rate floor with a price of 1.4% of face value If at expiration interest rates are 3.4%, how much is the profit/(loss) of MN National Bank?

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