Assuming that the average duration of its assets is four years, while the average duration...
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Accounting
Assuming that the average duration of its assets is four years, while the average duration of its liabilities is seven years, then a 2.5 percentage point decrease in interest rates will cause the net worth of First National Bank to ( increase , decrease ) by ________ percent of the total original asset value. (Hint: Net worth is defined by Asset minus Liability thus just get the profit change in terms of %.)
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