Pros and cons of the duration model in interest rate risk

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1. What are the pros and cons of the Duration Model in Interest rate risk.

2. What is the maximum amount Ginger Logan can borrow today if it must be repaid in 16 months with simple interest at 6 percent and she knows that at the time she will be able to repay no more than 37,000? She can borrow how much? round answer to the nearest dollar as needed.

Reference no: EM132020512

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