Blue Steel Community Bank has the following market value balance sheet: a. What is the duration of
Question:
a. What is the duration of the assets?
b. What is the duration of the liabilities?
c. Is the bank immune to interest rate risk?
Transcribed Image Text:
Market Value (In $ milions) Duration (in years) Asset or Liablity Federal funds deposits Accounts receivable Short-term loans Long-term loans Mortgages Checking and savings deposits Certificates of deposit Long-term financing Equity $ 31 590 340 98 485 645 410 336 153 .20 65 5.25 2.85 1.60 9.80 N/A
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Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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