Multiple Choice
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 [Refer to: 9-95]
Correct Answer:
Verified
Correct Answer:
Verified
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