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    Exam 14: Managing Interest Rate Risk
  5. Question
    When DGAP = 0, a Change in Interest Rates Will
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When DGAP = 0, a Change in Interest Rates Will

Question 7

Question 7

True/False

When DGAP = 0, a change in interest rates will have the same dollar value effect on the prices of the asset and liability. Our position is insulated from interest rate movements.

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