To get DE to equal zero to protect the equity value in the event of an interest rate change, the bank could
A) reduce DA to 1.21 years.
B) increase DL to 2.44 years.
C) increase DL to 3.10 years.
D) reduce DA to zero.
E) increase DL to 2.66 years. 2.5 x 850/768
Correct Answer:
Verified
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