Assume you have the following asset and liability in your Balance Sheet:Asset - Bond AModified Duration = 2.6 yearsValue= RM1.5 millionLiability - Bond BModified Duration = 3.1 yearsValue= RM1.0 million duration gap is 0.53 years, net worth reduce by 8000. What should or could you to achieve immunized balance sheet?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
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Assume you have the following asset and liability in your Balance Sheet:
Asset - Bond A
Modified Duration = 2.6 years
Value= RM1.5 million
Liability - Bond B
Modified Duration = 3.1 years
Value= RM1.0 million

duration gap is 0.53 years, net worth reduce by 8000.

What should or could you to achieve immunized balance sheet? 

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