Question
The duration formula implies that if interest rates increase, duration will . The duration gap formula implies that, ceteris paribus , the gap will increase,
Theduration formulaimplies that if interest rates increase, duration will . Theduration gap formulaimplies that,ceteris paribus, the gap will increase, if the interest rate change affects the value of the bank's assets than it affects the value of its liabilities.
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
