If the chosen maturity buckets have a time period that is too long, the repricing model may produce inaccurate results because

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the FI will be unable to accurately measure the quantity of rate sensitive liabilities.

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as the time to maturity increases, the price volatility increases.

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price changes will be overestimated.

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the FI will be unable to accurately measure the quantity of rate sensitive assets.

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there may be large differentials in the time to repricing for different securities within each maturity bucket.

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