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3. Bank X's total assets is $150 million with a duration of 6 years, and its liabilities is $130 million with a duration of 3

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3. Bank X's total assets is $150 million with a duration of 6 years, and its liabilities is $130 million with a duration of 3 years. a) What is duration gap of the bank? b) If interest rate decrease from current level of 3% to 2%, how much bank's net worth changes in $

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