A bank (called Acquirer C) has floating-rate deposits and fixed-rate loans, and plans to acquire one of two target insurance companies, A and B. Target A has a positive duration gap (DG), while target B's duration gap is negative. 

Which target is more attractive to Acquirer C, if all else equal?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below A fixed interest rate simply implies th... View the full answer