Problem:
A bank has DA = 2.4 years and DL= 0.9 years. The bank has total equity of $82 million and total assets of $850 million. Interest rates are at 6%.
Required:
Question: What is the bank's duration gap in years?
- 1.5325
- 1.5868
- 1.2685
- 1.4563
- 1.6222
Note: Please answer in proper manner and show all computations