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Axon Bank has assets of $10 million comprising loans and Treasury bonds. The average duration of these assets is estimated at 9.89 years. The assets
Axon Bank has assets of $10 million comprising loans and Treasury bonds. The average duration of these assets is estimated at 9.89 years. The assets are financed with equity and $7 million in deposits and subordinated bonds having an average duration of 1.75 years. Calculate the leverage-adjusted duration gap of Axon Bank. (Give your answer to 2 decimal places. Do not include the unit "years" in your answer.)
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