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Consider one-year loan with an amount of $200 at 16% interest rate. The loan required repayments to be in quarter bases (meaning: repayments are made
Consider one-year loan with an amount of $200 at 16% interest rate. The loan required repayments to be in quarter bases (meaning: repayments are made every 3 months). The first payment of the loan will be made at the end of the first 3 months. The second payment will be at end of 6 months, and the third payment will be at the end of 9 months, and the fourth payment will be at end of end of year. The loan is financed by one-year time deposit paying 16% interest rate. Calculate: 1. Duration of assets 2. Duration of liabilities 3. The duration GAP
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