Question: If a bank has a positive duration gap, the value of its equity is expected to: A ) decline if interest rates go up B

If a bank has a positive duration gap, the value of its equity is expected to:
A) decline if interest rates go up
B) remain unchanged if interest rates go up
C) increase if interest rates go up
D) duration gap has no relation to the change in a bank's equity position
If a bank has a positive duration gap, the value

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!