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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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Quant Banking Corporation is considering a proposal to sell UK government bonds and subsequently use the proceeds to offer new loans denominated in Brazilian Real (BRL) to Brazilian corporations. Given this scenario, and under the assumptions that the average value-weighted duration of its assets remains unchanged, there are no other changes to the structure of its assets and liabilities, and all foreign exchange risks are fully hedged, which of the following statements will be accurate?

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