Suppose a bank has an asset duration of 4.4 years and a liability duration of 3.2 years. This bank has $900 million in assets and $600 million in liabilities. They are planning on trading in a Treasury bond future which has a duration of 6 years and which is selling right now for $98,500 for a $100,000 contract. How many futures contracts does this bank need to fully hedge itself against interest rate risk

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

they work in some type of way

answer; the landlord can sue the renter,and the renter loses the security deposit;

answer; closing the loop;