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You calculate that the duration of your assets of your bank is 5.6 years and the duration of your liabilities is 4.2 years. You currently
You calculate that the duration of your assets of your bank is 5.6 years and the duration of your liabilities is 4.2 years. You currently have $70 million in liabilities and $5 million in equity. The interest rate is currently 4%. Calculate the change in net worth if interest rates decrease by 20 basis points.
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