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Question 2: Suppose that a savings institution has an average asset duration of 4.5 years and an average liability duration of 5.0 years. If the

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Question 2: Suppose that a savings institution has an average asset duration of 4.5 years and an average liability duration of 5.0 years. If the savings institution holds total assets of BD 630 million and total liabilities of BD 537 million. Answer the following questions. a) Does it have a significant leverage-adjusted duration gap? b) If interest rates fall, what will happen to the value of its net worth

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