One method of changing the positive leverage adjusted duration gap for the purpose of immunizing the net worth of a typical depository institution is to increase the duration of the assets and to decrease the duration of the liabilities.
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Q36: Investing in a zero-coupon asset with a
Q37: The smaller the leverage-adjusted duration gap, the
Q38: The duration of a portfolio of assets
Q39: Immunizing the balance sheet of an FI
Q40: Investing in a zero-coupon asset with a
Q42: The greater is convexity, the more insurance
Q43: Attempts to satisfy the objectives of shareholders
Q44: As the investment horizon approaches, the duration
Q45: Dollar duration is the dollar value change
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