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Consider the following financial institution: Market value of its assets = USD10billion Projected value of the liabilities = USD 8billion Modified duration of the liability

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Consider the following financial institution: Market value of its assets = USD10billion Projected value of the liabilities = USD 8billion Modified duration of the liability = 5 years Which of the following asset modified durations makes the funding gap interest rate risk of the financial institution to be zero when the interest rate changes by 1%? O 3 years 4 years O 5 years 6 years None

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