1. A bond has a duration of 6.8 years.What is the expected change in price if the yield decreases from 3% to 2.99%
2. A bond has a duration of 5.1 years.What is the expected change in price if the yield increases from 6% to 6.01%
3. A bank has interest-rate sensitive assets with a value of $810 and a weighted duration of 8.5 years, interest-rate sensitive liabilities with a value of $ 540 and a weighted duration of 7.1 years,and a duration gap of 3.77 years.What is the effect on the bank;s net equity if the interest rate increases from 9% to 9.01%
4. A bank has interest-rate sensitive assets with a value of $810 and a weighted duration of 8.5 years,interest-rate sensitive liabilities with a value of $ 540 and a weighted duration of 7.1 years,and a duration gap of 3.77 years. What is the effect on the bank's net equity if the interest rate decrease from 9% to 8.99%
5. A bank has interest-rate sensitive assets with a value of $900 and a weighted duration of 5.7 years,interest-rate sensitive liabilities with a value of $ 800 and a weighted duration of 6 years,and a duration gap of -1.05 years. What is the effect on the bank's net equity if the interest rate decrease from 4% to 3.99%
6. A bank has interest-rate sensitive assets with a value of $900 and a weighted duration of 5.7 years,interest-rate sensitive liabilities with a value of $ 800 and a weighted duration of 6 years,and a duration gap of -1.05 years.What is the effect on the bank;s net equity if the interest rate increase from 4% to 4.01%.