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Use the following sheet to answer the following question Balance Sheet (dollars in thousands) and Duration (in years) a. What is the average duration of
Use the following sheet to answer the following question
Balance Sheet (dollars in thousands) and Duration (in years) a. What is the average duration of all the assets? b. What is the average duration of all the liabilities? c. What is the Fl's leverage-adjusted duration gap? What is the Fl's interest rate risk exposure? d. If the entire yield curve shifted upward 0.5 percent (i.e., R/(1+R)=0.0050 ), what is the impact on the FI's market value of equity? e. If the entire yield curve shifted downward 0.25 percent (i.e., R/(1+R)=0.0025 ), what is the impact on the FI's market value of equityStep by Step Solution
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