The banking institution of which you are manager has $20 million invested in fixed-rate mortgage loans funded by 90-day money market CDs with rates pegged to the 90-day Treasury bills rate. You are convinced by experts' forecasts that rates will have risen from their current level of 8.25 percent to 10 percent when investors roll over the CDs at maturity (90 days from today).

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P V F V 1 r n where P V present value F V ... View the full answer