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will leave a positive upvote (please choose one of the options) Assume a bank has total assets of $40 million with an average duration of
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Assume a bank has total assets of $40 million with an average duration of 3 years, along with $25 million in total liabilities that have an average duration of 5 years. If interest rates rise by 2 percentage points, net worth will Min fall by $100,000 KUN rise by $8,800,000 Drise by $100,000 fall by $8.800,000 Step by Step Solution
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