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Duration Gaps for Banks ( Module 2 ) The Pleasant View Bank's balance sheet is as follows: Ave. Duration 1 year 1 0 years 1

Duration Gaps for Banks (Module 2)
The Pleasant View Bank's balance sheet is as follows:
Ave. Duration
1 year
10 years
1 year
4 years
a. What is the Bank's Duration gap (D-Gap)?
D-GAP = Duration of Assets -{Total Liabs./Total Assets
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