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If the market value of assets of a bank is $2,000 with an average duration of 5 years and market value of liabilities is $1,600

If the market value of assets of a bank is $2,000 with an average duration of 5 years and market value of liabilities is $1,600 with an average duration of 6.25 years.

Calculate the duration gap of this bank?

0 years

-2.25 years

1.25 years

-1.25 years

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