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Texas Thrift Association reports an average asset duration of 7 years and an average liability duration of 4 years. In its latest financial report, the
Texas Thrift Association reports an average asset duration of 7 years and an average liability duration of 4 years. In its latest financial report, the association recorded total assets of $1.9 billion and total liabilities of $1.3 billion. If interest rates began at 5 percent and then suddenly fell to 4.6 percent, what change will occur in the value of Texass net worth?
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