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A bank has Da = 7.6 years and DL= 1.8 years. The bank has total liabilities of $1830 million and total assets of $2100 million.
A bank has Da = 7.6 years and DL= 1.8 years. The bank has total liabilities of $1830 million and total assets of $2100 million. The bank's average asset yield is 7.9% (R in the formula). Using the duration gap, predict what will be the impact, if any, on the market value of the bank's equity if all interest rates rise by 150 basis points (1.5%)? -296.10 176.08 -189.99 -169.32 -176.08 169.32
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