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Suppose that a thrift institution has an average asset duration of 2.5 years and an average liability duration of 3.0 years. If the thrift holds
Suppose that a thrift institution has an average asset duration of 2.5 years and an average liability duration of 3.0 years. If the thrift holds total assets of GHS 560 million and total liabilities of GHS 467 million, does it have a significant leverage-adjusted duration gap? If interest rates rise, what will happen to the value of its net worth
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