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Business, 12.04.2021 23:50 SkinnestXOXO

Immunizing the balance sheet to protect equity holders from the effects of interest rate risk occurs when Group of answer choices the effect of a change in the level of interest rates on the value of the assets of the FI is exactly offset by the effect of the same change in interest rates on the liabilities of the FI. the repricing gap is zero, so that all assets have a matching liability that reprices at the same time. the modified duration gap of the balance sheet is zero. the maturity gap is zero, so that all assets have a matching-maturity liability. the modified duration is equal to the dollar duration.

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