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Which of the following embedded options could lengthen duration thus complicating EVE sensitivity analysis? a bond being called a deposit withdrawn early a deposit that
Which of the following embedded options could lengthen duration thus complicating EVE sensitivity analysis? a bond being called a deposit withdrawn early a deposit that is not withdrawn as expected O prepayments greater than anticipated Given the following information, how can this bank reduce the impact changes in interest rates have on the economic value of equity (immunize the portfolio)? Weighted Average Duration of Bank Assets (DA) = 2.5 Weighted Average Duration of Bank Liabilities (DL) = 3.2 Market Value of Assets (MVA) = 1000 Market Value of Liabilities (MVL) = 900 Market Value of Equity (MVE) = 100 Issue longer-term CDs Sell floating-rate loans and make fixed-rate loans Sell fixed-rate loans and make floating-rate loans Buy short-term securities and sell long-term securities Which of the following embedded options could lengthen duration thus complicating EVE sensitivity analysis? a bond being called a deposit withdrawn early a deposit that is not withdrawn as expected O prepayments greater than anticipated Given the following information, how can this bank reduce the impact changes in interest rates have on the economic value of equity (immunize the portfolio)? Weighted Average Duration of Bank Assets (DA) = 2.5 Weighted Average Duration of Bank Liabilities (DL) = 3.2 Market Value of Assets (MVA) = 1000 Market Value of Liabilities (MVL) = 900 Market Value of Equity (MVE) = 100 Issue longer-term CDs Sell floating-rate loans and make fixed-rate loans Sell fixed-rate loans and make floating-rate loans Buy short-term securities and sell long-term securities
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