What is the bank''s duration gap in years

Reference no: EM13174865

A bank has DA= 2.4 years and DL= 0.9 years. The bank has total equity of $82 million and total assets of $850 million. Interest rates are at 6%.

a.What is the bank's duration gap in years?
b. If interest rates increase 100 basis points then what will be the predicted dollar change in equity value?

Reference no: EM13174865

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