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Consider the following balance sheet (in thousands) for an FI: Assets Duration =6 years A=$1000 Liabilities Duration =1 year L=$800 Equity $200 Question: Compute the
Consider the following balance sheet (in thousands) for an FI: Assets Duration =6 years A=$1000 Liabilities Duration =1 year L=$800 Equity $200 Question: Compute the duration of equity and use it compute the new value of equity if interest rates increase by 2%
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Financial Modeling
Authors: Simon Benninga, Tal Mofkadi
5th Edition
0262046423, 9780253337825
