How can you tell if you are fully hedged using duration gap analysis?
Answer to relevant QuestionsA government bond is currently selling for $1,195 and pays $75 per year in interest for 14 years when it matures. If the redemption value of this bond is $1,000, what is its yield to maturity if purchased today for $1,195? The cumulative interest rate gap of Poquoson Savings Bank increases 60 percent from an initial figure of $25 million. If market interest rates rise by 25 percent from an initial level of 3 percent, what changes will occur in ...Conway Thrift Association reports an average asset duration of 7 years and an average liability duration of 4 years. In its latest financial report, the association recorded total assets of $1.8 billion and total ...What is a call option?Explain what is involved in a put option.
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