Multiple Choice
Which of the following will not affect a bank's duration estimate for the year?
A) Prepayments on loans that exceed expectations.
B) A 20-year corporate bond that is unexpectedly called in 6 months.
C) Certificates of deposit that are withdrawn early.
D) Holding a 30-year Treasury bond until maturity.
E) All of the above will affect a bank's estimated duration for the year.
Correct Answer:
Verified
Correct Answer:
Verified
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