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Question
Calculate the leverage-adjusted duration gap to four decimal places and state the FI's interest rate risk exposure of this institution.
A. +1.0308 years; exposed to interest rate increases.
B. -0.3232 years; exposed to interest rate increases.
C. +0.8666 years; exposed to interest rate increases.
D. +0.4875 years; exposed to interest rate increases.
E. -1.3232 years; exposed to interest rate decreases.
Answer
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