What determines rate sensitivity? 目 In general,an asset or liability is normally classified as rate-sensitive with a time frame if: 1.It matures 2. It represents and interim,or partial,principal payment 3.The interest rate applied to outstanding principal changes contractually during the interval 4. The outstanding principal can be repriced when some base rate of index changes and management expects the base rate index to change during the interval 碰制酥价贸易大考What determines rate What determines rate sensitivity? sensitivity? † In general, an asset or liability is normally classified as rate-sensitive with a time frame if: 1. It matures 2. It represents and interim, or partial, principal payment 3. The interest rate applied to outstanding principal changes contractually during the interval 4. The outstanding principal can be repriced when some base rate of index changes and management expects the base rate / index to change during the interval