Question: help! due soon!! Save Answe QUESTION 3 10 points Truly Special Bank has the following balance sheet Assets Liabilities and Equity Rate Sensitive $50 Rate
Save Answe QUESTION 3 10 points Truly Special Bank has the following balance sheet Assets Liabilities and Equity Rate Sensitive $50 Rate Sensitive $75 Fixed Rate $150 Fixed Rate $100 Total $200 Equity $25 Total $200 Rate sensitive assets are reprices quarterly at the 91-day T-bill ratelplus 150 basis points Fixed rate assets have five years until maturity and are paying 9% annually . Rate sensitive liabilities are repriced quarterly at the 91-day T-bill rate plus 100 basis points. Fixed rate liabilities have two years to maturity and pay 7% annually Currently the 91-day T-bill rate is 6.25% (yeah, that's crazy, but le's just go with it for the problem!) c Explain how a swap could be used by TSB to manage its interest rate risk exposure
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