Suppose a bank holds a $3,000,000, 5 year annual bond with a 6.5% coupon. The...
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Accounting
Suppose a bank holds a $3,000,000, 5 year annual bond with a 6.5% coupon. The bank pays for this bond with a$3,000,000 1 year CD with an annual interest rate of 2.45% interest. What is the asset value if interest rates rise by 75 basis points?
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