Assuming that the average duration of First National Bank's $100 million assets is five years, while the average duration of its $80 million liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to increase by $ (put a negative sign if it is a decrease) million dollars.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here