ISSUE 6-YEAR FIXED ELIMINATE INTEREST RATE RISK, THE DURATION OF TH...

1. Issue 6-year fixed eliminate interest rate risk, the duration of the CD rate CDs to eliminate must match the duration of the loan. For interest rate risk example, the bank could issue CDs with a 6 Disagreemonth reset to match the cash flow needs. The loan has a 3% cap while the CD has none. If