If the finance company you manage has a gap of +$5 million (rate-sensitive assets greater than rate-sensitive

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If the finance company you manage has a gap of +$5 million (rate-sensitive assets greater than rate-sensitive liabilities by $5 million), describe an interest-rate swap that would eliminate the company’s income gap.

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Financial Markets and Institutions

ISBN: 978-0133423624

8th edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Question Posted: May 23, 2018 01:56 AM

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If the finance company you manage has a gap of +$5 million (rate-sensitive assets greater than rate-sensitive

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It would swap interest on 5 ...View the full answer

Financial Markets and Institutions

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