A bank has liabilities with short durations such as short


A bank has liabilities with short durations (such as short term deposits). If the bank wishes to minimize interest rate risk and if the yields on all of the alternatives are the same, which investments would they prefer? a. long term, zero-coupon bonds b. conventional fixed rate mortgages c. long term, coupon bonds d. 5 year term loans. e. adjustable rate mortgages

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Financial Management: A bank has liabilities with short durations such as short
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