What size interest rate change make institution insolvent

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Question: A bank has DA = 2.5 years, DL = 0.6 years and k = 89%. Assets are equal to $1,500 million. According to the duration gap model, what size interest rate change would make the institution insolvent if rates are currently 6%? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131941414

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