If Duration GAP is zero,

Net interest income (NII) is insulated from changes in interest rates

Net interest margin (NIM) is insulated from changes in interest rates

The bank's net worth is insulated from changes in interest rates

The bank's assets are just as rate-sensitive as the bank's net worth

None of the above

For this and the next 2 questions: A bank has the following asset structure: Calculate the duration of the bank's assets.

	Amount	Rate	Duration
Cash	$10,000
Securities	210,000	7%	4.28
Mortgage bonds	3,000,000	8%	5.33
Commercial loans	5,500,000	10%	2.50

		3.5136 years
		8.7214 years
		1.2458 years
		1.22 years
		None of the above