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Business, 30.10.2021 14:00 proxydayz

5. Suppose that a savings institution has an average asset duration of 2.5 years and an average liability duration of 3.0 years. If the savings institution holds total assets of $560 million and total liabilities of $467 million, does it have a significant leverage-adjusted duration gap? If interest rates rise, what will happen to the value of its net worth?

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5. Suppose that a savings institution has an average asset duration of 2.5 years and an average liab...
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