An international bank is lending out a floating-rate Eurodollar loan. The bank finances this floating-rate...
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Accounting
An international bank is lending out a floating-rate Eurodollar loan. The bank finances this floating-rate Eurodollar loan by issuing fixed-rate Eurodollar bonds. a. If the interest rate falls, the international bank will incur an unexpected loss. b. If the interest rate rises, the international bank will incur an unexpected loss. c. If the interest rate falls, the international bank will receive an unexpected gain. d. If the interest rate rises, the international bank will receive an unexpected gain. e. Both a. and d. are correct.
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