What will be the effect of an increase in interest rate of


Assume that the assets and liabilities of a bank are $150 million and $120 million, respectively, and their durations are 3 and 4. What will be the effect of an increase in interest rate of 5% on the net worth of the bank?

Solution Preview :

Prepared by a verified Expert
Business Management: What will be the effect of an increase in interest rate of
Reference No:- TGS02277874

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)