Find the value of the stillwater bank net worth

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Question: Stillwater Bank and Trust Company has an average asset duration of 3.25 years and an average liability duration of 1.75 years. Its liabilities amount to $485 million, while its assets total- $512 million. Suppose that interest rates were 7 percent and then rise to 8 percent, what will happen to the value of the Stillwater bank's net worth as a result of a decline in interest rates?

Reference no: EM131717585

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