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  3. a bank has da = 2.5 years, dl= 0.80 years, and k =

A bank has DA = 2.5 years, DL= 0.80 years, and k = 92%. Assets...

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Accounting

A bank has DA = 2.5 years, DL= 0.80 years, and k = 92%. Assets are equal to $1,200 million. According to the duration gap model, find the change in the direction and magnitude of interest rate that would make the institution insolvent if rates are currently 5 percent?

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