Question: The current interest rate is 2 % . A bank has $ 6 2 of assets. These assets have an average duration of 1 3

The current interest rate is 2%. A bank has $62 of assets. These assets have an average duration of 13.8. How many assets will the bank have if the Fed raises interest rates by 5.8%?
Note: your answer should have at least two decimal places.
(the correct answer is 13.3482) please show me how you get that

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!