You have gathered the following market value and duration information on Friendly Bank: Assets: Market value (in
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You have gathered the following market value and duration information on Friendly Bank: Assets: Market value (in millions) Duration Overnight money $ 3.7 .0 1-year
Treasury securities 8.2 .5
Loans 11.6 1.8 Mortgages 11.9 7.9 $ 35.4
Liabilities: Checking accounts $ 13.9 .0
Short-term CD’s 4.5 .4
Long-term CD’s 10.9 3.5 $ 29.3 What new asset duration will immunize the balance sheet?
Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
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