Assume you are a manager of bank which has 15 million of

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Suppose you are the manager of the bank that has $15 million of fixed-rate assets, $30 million of interest rate- sensitive assets, $20 million of interest rate insensitive liabilities and $20 million of interest rate -sensitive liabilities.

a. Is the average duration of the bank's assets greater than the average duration of its liabilities? Why?

Reference no: EM13393831

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