The following financial assets are commonly held by financial institutions. These assets contain differing quantity...
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The following financial assets are commonly held by financial institutions. These assets contain differing quantity of interest rate risks. Rank the assets from 1 to 5 (the lower the risk the lower the rating) based on the quantity of interest rate risk. (5 marks) A B D E 10 year, zero coupon, A rated corporate bond 7 year, 6%, A rated bond 7 year, 8% BBB coupon bond 7 year 0% fixed rate loan secured by cash 3 year 5% loan secured by real estate The following financial assets are commonly held by financial institutions. These assets contain differing quantity of interest rate risks. Rank the assets from 1 to 5 (the lower the risk the lower the rating) based on the quantity of interest rate risk. (5 marks) A B D E 10 year, zero coupon, A rated corporate bond 7 year, 6%, A rated bond 7 year, 8% BBB coupon bond 7 year 0% fixed rate loan secured by cash 3 year 5% loan secured by real estate
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