Company T with total assets of $370 million and equity of $35 million has a leverage adjusted duration gap of +0.20 years. One-year maturity notes…
Company T with total assets of $370 million and equity of $35 million has a leverage adjusted duration gap of +0.20 years. One-year maturity notes are currently priced at par and are paying 4.5 percent annually. Two-year maturity notes are currently priced at par and are paying 6 percent annually. The terms of a swap of $100 million notional value of liabilities’ payments are 4.95 […]