Question: 4. Define benchmark rate. Give examples. 5. Define eurocurrency. Give examples. 6. What is a yield curve. Explain. 7. Six Month Libor Bid/Ask is 0.246%-0.250%.

4. Define "benchmark rate". Give examples. 5.
4. Define "benchmark rate". Give examples. 5. Define "eurocurrency". Give examples. 6. What is a yield curve. Explain. 7. Six Month Libor Bid/Ask is 0.246%-0.250%. Ignoring spreads, what is bank's profit if it accepts a six month deposit of $15M and then lends the funds for six months? 8. Name two financial instruments which can be used to hedge interest rate risk

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