A bank has $50 million in assets, $47 million in liabilities, and $3 million in shareholders' equity. If the duration of its liabilities is 1.3 and the bank wants to immunize its equity against interest rate risk and thus set the duration of equity equal to zero, it must select assets with an average duration of _________. How do I find this?

Answer rating: 100% (QA)

To find the average duration of assets that would set the duration of equity equal to zero we can us... View the full answer