What are the advantages of using duration as an asset-liability management tool as opposed to interest-sensitive gap analysis?
Answer to relevant QuestionsWhat are the principal limitations of duration gap analysis? Can you think of some way of reducing the impact of these limitations?What is duration?If a credit union’s net interest margin, which was 2.50 percent, increases 10 percent and its total assets, which stood originally at $575 million, rise by 20 percent, what change will occur in the bank's net interest ...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 information do T-bond and Eurodollar futures option quotes contain?
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