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Bank Use of Funds :
Why do banks invest in securities even though loans typically generate a higher return?
Explain how a bank decides the appropriate percentage of funds that should be allocated to each type of asset.
Basic Finance, Finance
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Are there risks involved in investing in security markets? Can someone explain what is a risk-return tradeoff? Lastly are risks ever mitigated with diversification and time?
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A firm issues $100,000,000 of bond priced at 99 percent and carrying a coupon rate of 12%. Calculate: a) The number of bond actually issued. b) the price paid by the investors for each bond c) the dollar coupon to be pai ...
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