Question: Assume a U . S . bank uses 1 - year CDs ( certificate of deposits ) to fund 5 - year fixed - rate

Assume a U.S. bank uses 1-year CDs (certificate of deposits) to
fund 5-year fixed-rate mortgages. If the bank engages in an
interest rate swap, but the index (LIBOR) on the swap does not
move in perfect tandem with interest rates on 1-year CDs, then
this risk reflects
Assume a U.S. bank uses 1-year CDs (certificate of deposits) to

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