Average asset duration, A bank has average asset duration

Average asset duration

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Reference no: EM13917657

A bank has average asset duration of 4.7 years and an average liability duration of 3.3 years. This bank has $750 million in total assets and $500 million in total liabilities. This bank has:

A) positive duration gap of 8.0 years.

B) A negative duration gap of 2.5 years.

C) A positive duration gap of 1.4 years.

D) A positive duration gap of 2.5 years.

E) None of the above.

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Reference no: EM13917657

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