The Following Information Is About Current Spot Rates for Second

question 72

Multiple Choice

The following information is about current spot rates for Second Duration Savings' assets (loans) and liabilities (CDs) . All interest rates are fixed and paid annually. If the FI finances a $500,000 2-year loan with a $400,000 1-year CD and equity, what is the leveraged adjusted duration gap of this position? Use your answer to the previous question.

• A)+1.25 years
• B)+1.12 years
• C)-1.12 years
• D)+0.92 years
• E)-1.25 years

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Definitions:

Codominant

In genetics, a condition where two different versions (alleles) of a gene are expressed equally in the phenotype of the organism, neither being recessive to the other.

Type O Blood

Type O blood is one of the four major blood groups, characterized by the absence of A and B antigens on the surface of red blood cells, making it a universal donor for red blood cell transfusions.

Genotype

The genetic makeup of an organism, consisting of the DNA sequences that contribute to the organism's physical and physiological traits.

Interbreeding

The mating or reproduction between individuals from different populations, breeds, or species, leading to gene flow between populations.