What is the equity duration of bank

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A) What is the equity duration of this bank?

B) If interest rates are currently 5%, but fell to 4%, what would be the % change in equity value faced by this bank?

C) if, due to a new government consumption support program, this bank faces a wave of early payments of car loans, that reduces the size of its auto loan portfolio from 200 million euros to 100 million euros and increases cash reserves to 200 million euros. What would be the equity duration of this bank, following these early loan payments?

D) why is the duration of the liabilities of an investment bank a priori greater than that of a retail bank?

Reference no: EM133004931

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