Question
If you are long funded, do your assets have a longer or shorter maturity than your liabilities? Does this create reinvestment risk or refinancing risk?
If you are long funded, do your assets have a longer or shorter maturity than your liabilities? Does this create reinvestment risk or refinancing risk? What movement in interest rates will cause a loss?
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
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