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You calculate that the duration of your assets of your bank is 6.5 years and the duration of your liabilities is 4.5 years. You currently
You calculate that the duration of your assets of your bank is 6.5 years and the duration of your liabilities is 4.5 years. You currently have $80 million in liabilities and $5 million in equity. If you held DA constant at 6.5 years, what must you change the duration of your liabilities to in order to be immunized against interest rate risk?
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