Answered: The average duration of its assets is…

The average duration of its assets is longer than that of its liabilities. There is a reinvestment risk re-finance risk re-pricing risk basis point risk

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 3SEQ: The expected period of time that will elapse between the date of a capital investment and...

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The average duration of its assets is longer than that of its liabilities. There is a

reinvestment risk

re-finance risk

re-pricing risk

basis point risk

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