A savings banks weighted average asset duration is 8 years. Its total liabilities amount to $925 million,

Question:

A savings bank’s weighted average asset duration is 8 years. Its total liabilities amount to $925 million, while its assets total 1.25 billion dollars. What is the dollar-weighted duration of the bank’s liability if it has a zero leverage-adjusted duration gap?

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...