Question 4 (sPoints 5 Points To decrease interest rate sensitive assets, a bank can: A buy longer-term securities. B pay premiums on subordinated debt. c shorten deposit maturities. O O O D accept more fixed rate deposits E All of the above. Question 5 5 Points The risk that incurred by an Fl as a result of activities related to its contingent assets and liabilities held off the balance sheet is referred to as A) Off-balance-sheet risk. B Firm-specific credit risk. Refinancing risk. D Liquidity risk. E Sovereign risk. Question 6 SPoints 5 Points Issuing subordinated debt to raise funds are classified on a Depository Institution's balance sheet as A assets, because the Dl uses subordinated debt to earn profits. B assets, because customers view subordinated debt issuance as assets. C liabilities, because the Dl uses subordinated debt as a source of funds. D liabilities, because Dls are required to serve debt issuers. E none of the above is correct. Question 7 5 Points A zero-coupon bond with a face value of $10,000 with a remaining time to maturity of two years. The annual yield to maturity is 1296. The duration of this bond is: A 1.81 years. B 1.9 years. C 2 years. D 2.3 years E Not enough information is given to answer the