Lecture 8 - Asset/Liability Management (Duration Gap Model)

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EXAM - Be able to do problems similar to Chapter 7 Problems of 13, 17, 18, negative duration example, and understand relationships discussed in class or notes below.   See comparison of GAP and Duration gap (DGap) relationships at the end of the notes and do not confuse the two.

Also see additional Chapter 7 problems below.

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OPTIONAL (NOT ON EXAM):  For a good discussion of a negative duration example, defined benefit pensions, and the problems for corporate earnings and financial planning click on the links below.

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