Question
The Raymond Burr National Bank has $2000 in assets with an average duration of 5 years. This bank has $1600 in liabilities with an average
The Raymond Burr National Bank has $2000 in assets with an average duration of 5 years. This bank has $1600 in liabilities with an average duration of 3.5 years. Market interest rates start at 6% and fall by 1%. What is the change in net worth of this bank?
| A. | $28.30 | |
| B. | $-41.51 | |
| C. | -$28.30 | |
| D. | $0 | |
| E. | $41.51 |
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Introduction To Finance
Authors: Lawrence J Gitman, Jeff Madura
1st Edition
0201635372, 9780201635379
