Orinoco Bank has the following rate-sensitive assets: Treasury bills ($210 million), commercial loans ($540 million), and consumer
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Orinoco Bank has the following rate-sensitive assets: Treasury bills ($210 million), commercial loans ($540 million), and consumer loans ($200 million). The duration of each type of asset is 0.65, 1.87 and 6.9 years, respectively. Calculate Orinoco Bank’s average duration of the assets if physical capital equals $35 million and the bank holds $15 million in reserves.
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Related Book For
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
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