4. All of the following concerning duration gap analysis is correct EXCEPT:

Select one:

a. It ignores the convexity of the pricing of fixed-interest securities.

b. It assumes that the slope of the yield curve remains unchanged.

c. The analysis examines the sensitivity of the market value of a financial institution's net worth to changes in interest rates.

d. It considers different interest rates for different maturities.

e. The analysis is based on Macaulay's concept of duration, which measures the average lifetime of a security's stream of payments.