To use the concept of duration to analyze the effect of changes in interest rates on the market value of an asset,a bank manager would multiply
A) the negative of the duration of the asset by the change in the interest rate, ?i.
B) the negative of the duration of the asset by ?i /(1 + i) .
C) the duration of the asset by the change in the interest rate, ?i.
D) the duration of the asset by ?i /(1 + i) .
Correct Answer:
Verified
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A) refuses
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A) are a particular form of
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First National Bank
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