Multiple Choice
Which of the following is NOT a problem in the use of duration gap management?
A) interest rates on assets and liabilities may be perfectly correlated with changes in the level of interest rates
B) interest rates on all maturities of assets normally shift up and down at different times
C) the relationship between interest rate changes and bond price changes is not linear
D) duration drift can occur
Correct Answer:
Verified
Correct Answer:
Verified
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