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Duration analysis Suppose a bank has $90 in assets and $84 in liabilities (the rest is capital that we do not need here). Also
Duration analysis Suppose a bank has $90 in assets and $84 in liabilities (the rest is capital that we do not need here). Also assume the average duration of their assets is 6 years and for their liabilities is 4 years. Given this information determine the change in net worth for this bank if the interest rate changes by 7%? (Round answers to 2 decimal places as needed) Your Answer:
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Public Finance
Authors: Harvey Rosen, Ted Gayer
10th edition
9781259716874, 78021685, 1259716872, 978-0078021688
