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Question
The following information is about current spot rates for Second Duration Savings' assets (loans) and liabilities (CDs). All interest rates are fixed and paid annually.
If the FI finances a $500,000 2-year loan with a $400,000 1-year CD and equity, what is the leveraged adjusted duration gap of this position? Use your answer to the previous question.
A. +1.25 years
B. +1.12 years
C. -1.12 years
D. +0.92 years
E. -1.25 years
Answer
This answer is hidden. It contains 1 characters.
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