Assignment:
Q1. Define maturity mismatch. Why is maturity mismatch important for understanding a bank’s risk and analyzing its performance?
Q2. If a bank increases its maturity mismatch, what happens to its economic spread before taxes and its economic spread after taxes (i.e., including the tax penalty)?
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.