Question
Theoretically, setting the duration of assets (DA ) equal to the adjusted duration of liabilities (kDL), i.e., DA =kDL, will immunize a depository institution (DI)
Theoretically, setting the duration of assets (DA ) equal to the adjusted duration of liabilities (kDL), i.e., DA =kDL, will immunize a depository institution (DI) from the interest rate risk. But why do the DIs set the goal of DA =DL instead?
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The Social Profit Handbook
Authors: David Grant
1st Edition
1603586040, 978-1603586047
