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If the duration of bank's assets is 3.5 and the duration of liabilities is 2.5 , the bank has $45 of assets and $35 of

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If the duration of bank's assets is 3.5 and the duration of liabilities is 2.5 , the bank has $45 of assets and $35 of liabilities, what is the bank's duration gap? What will be the change in bank's capital if the interest rate rises from 4% to 5%. Write you answer to the first question in the first blank and to the second in the second. Write numbers only with, as a decimal separator and round to 2 decimal points (i.e. 1.23 or -1.23 ) A A

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