How companys rate sensitivity gap differ from most banks

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Reference no: EM131220925

Suppose Ashley's Finance Company raises most of its funds by issuing long-term bonds. It uses these funds for floating-rate loans.

a. How does the company's rate-sensitivity gap differ from those of most banks?

b. What deal could Ashley and Melvin make to reduce risk for both of their institutions?

Reference no: EM131220925

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