Question
A bank has an average asset duration of 5 years and an average liability duration of 2 years.This bank has total assets of $500 million
A bank has an average asset duration of 5 years and an average liability duration of 2 years.This bank has total assets of $500 million and total liabilities of $400 million.Currently, market interest rates are 10 percent.If interest rates fall by 1 percent (to 9 percent), what is this bank's change in net worth?
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Basic Finance An Introduction To Financial Institutions, Investments, And Management
Authors: Herbert B. Mayo
12th Edition
1337691011, 978-1337691017
