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Conway Thrift Association reports an average asset duration of 7 years and an average liability duration of 4 years. In its latest financial report, the

Conway Thrift Association reports an average asset duration of 7 years and an average liability duration of 4 years. In its latest financial report, the association recorded total assets of $1.8 billion and total liabilities of $1.5 billion. What is the leverage-adjusted duration gap? Also, if interest rates began at 5 percent and then suddenly climbed to 6 percent, what change will occur in the value of Conways net worth?

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