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If a financial institutions assets and liabilities have the same market value, but the duration...

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Accounting

If a financial institutions assets and liabilities have the same market value, but the duration of the liabilities is greater than the duration of the assets, what will cause the institution to loose equity? Group of answer choices A. If interest rates go up B. If interest rates go down C. Both A and B are correct D. Neither A nor B are correct.

If interest rates go up, that is good news for a fixed-rate-coupon bond-holder based on which of the following: Group of answer choices A. Interest rate risk B. Reinvestment risk C. Both A and B above D. Neither A nor B above

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