Business, 02.04.2021 03:50 tawna6988owtjg6

3. Suppose a bank has financed a $2,000,000 6-year loan with an annual coupon rate of 5.75% with a 8-year $2,000,000 CD with a semiannual coupon rate 5.25%. The yield on the loan is 6.1% and the yield on the CD is 5.00%. a. Calculate the (i) durations and (ii) modified durations for the loan and the CD.

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3. Suppose a bank has financed a $2,000,000 6-year loan with an annual coupon rate of 5.75% with a 8...

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