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Each question is 7 points and total are 21 points. Please show your detailed work to get full credits. 1. Bank X's total assets is
Each question is 7 points and total are 21 points. Please show your detailed work to get full credits. 1. Bank X's total assets is $170 million with a duration of 8 years, and its liabilities is $140 million with a duration of 4 years. a) what is duration gap for the bank? b) If interest rate decrease from current level of 8% to 7%, how much bank's net worth changes in $
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Economics For Investment Decision Makers
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
1st Edition
1118111966, 9781118111963
