Question: Refer once again to your answer to Question 5. Did the bank's irrurtonieation strategy depend upon marhet interest rates rising over the mac of the


Refer once again to your answer to Question 5. Did the bank's irrurtonieation strategy depend upon marhet interest rates rising over the mac of the coming year, or is the bank's profit pe- sition protected from both increases and decreases in the level of market interest rates? Explain your answer by demoasuating the banks net gain or loss on each of the three components of its minority lending program, assuming that market interest rates fall otter the eeurse of the com- ing year, In this case. assume that the following interest rates and furoren contract prices are oh- sertred one year from today, and recalculate BSB's net gain or loss on each component of the minority lending program: One-year Treasury security spot rate 4.3% 1/ Dnahyear hank certificate oi deposit rate tots FNMA yield 5.5% Treasury bend futures contract price 124413 Treasury hi] tonnes contract price 35.93 Eurotloliar futures contract price 9191
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