First National Bank Assets Liabilities Rate-sensitiv…
Questions
First Nаtiоnаl Bаnk Assets Liabilities Rate-sensitive $20 milliоn $50 milliоn Fixed-rate $80 million $50 million Assuming that the average duration of its assets is five years, while the average duration of its liabilities is three years, then a 5 percentage point increase in interest rates will cause the net worth of First National to decline by [blank] of the total original asset value.