Evaluate how interest rate risk can be managed

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Reference no: EM131302482

Question :1.

Support the re-pricing model for measuring interest rate risk exposure. If needed, feel free to include numerical illustrations for clarifying your discussion.

2. Argue the benefits of utilizing duration for measuring interest rate risk in financial institutions. If needed, feel free to include numerical illustrations for clarifying your discussion.

3. Using a commercial bank as an illustration, evaluate how interest rate risk can be managed (distinct from the measurement issue). Here, the objective is to control or mitigate risk under different assumptions and different risk tolerances.

Reference no: EM131302482

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