If a bank increases its maturity mismatch, what happens to its economic spread before taxes and its
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If a bank increases its maturity mismatch, what happens to its economic spread before taxes and its economic spread after taxes (i.e., including the tax penalty)?
MaturityMaturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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The maturity mismatch does not necessarily affect the pretax economic ...View the full answer
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