You start a bank. You plan on lending 500m USD with a duration of 10...
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Finance
You start a bank. You plan on lending 500m USD with a duration of 10 years. Unlike a typical bank, you will finance your loans with external debt (rather than deposits) with duration of 20 years. You will finance the rest with your own equity. What fraction of the loans will you finance with external debt so that the bank is immunized?
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