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Suppose you have $10 million to invest in the securities of one of two Financial institutions labelled FIA and FIB. FIA has a duration gap
Suppose you have $10 million to invest in the securities of one of two Financial institutions labelled FIA and FIB. FIA has a duration gap of +2.35, while FIB has a duration gap of -1.45. Briefly discuss the conditions under which you would choose to invest in a particular institution.
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