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Hi I don't know why answer is 10 percent First National Bank Assets Liabilitiies $50 million $50 million ariable-rate $20 million Fixed-rate $80 million ssuming
Hi I don't know why answer is 10 percent
First National Bank Assets Liabilitiies $50 million $50 million ariable-rate $20 million Fixed-rate $80 million ssuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by approximately..of the total original asset value. 25 percent 5 percent You Answered 15 percent orrect Answer 10 percentStep by Step Solution
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