If the duration gap is zero, then the market value of equity is ____________ interest rates.
A) increased due to an increase
B) increased due to a decrease
C) decreased due to an increase
D) immunized from changes

Question

Quizplus · Accepted Answer

When the duration gap is zero, it means the duration of assets and liabilities are matched, making the market value of equity immunized from changes in interest rates.

If the Duration Gap Is Zero, Then the Market Value