Blue Steel Community Bank has the following market value balance sheet: a. What is the duration of
Question:
Blue Steel Community Bank has the following market value balance sheet:
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 $ millions) $31 540 320 on 435 615 390 285 134 Duration (in years) Asset or Liability Federal funds deposits Accounts receivable Short-term loans Long-term loans Mortgages Checking and savings deposits 20 .65 5.25 2.85 1.60 9.80 N/A
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Related Book For
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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