duration of assets of 2.4 years and a duration of liabilities of 0.9 years. The bank has total equity of $82 million and total assets of $850 million.   What is the bank's duration gap in years?   Given the information from the previous question, what duration of liabilities would be necessary to achieve a duration gap to zero?

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A bank has a duration of assets of 2.4 years and a duration of liabilities of 0.9 years. The bank has total equity of $82 million and total assets of $850 million.

 

What is the bank's duration gap in years?

 

Given the information from the previous question, what duration of liabilities would be necessary to achieve a duration gap to zero?

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