D Question 18 High Street Bank has $125 million in commercial loans with an average duration...

  

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D Question 18 High Street Bank has $125 million in commercial loans with an average duration of 0.45 years; $35 million in consumer loans with an average duration of 1.25 years; and $25 million in U.S. Treasury bonds with an average duration of 5 years. What will be the bank's weighted average duration of assets portfolio? Show all your work. Edit View Insert Format Tools Table Paragraph 12pt BIUA 2 T² (O A @D W JAN 10 5 pts N Question 19 6 pts A bank has an average asset duration of 5 years and an average liability duration of 3 years. This bank has total assets of $500 million and total liabilities of $250 million. Currently, market interest rates are 10 percent. If interest rates fall by 2 percent (to 8 percent), what is this bank's estimated change in economic value of equity (EVE)? You can use the current market interest rate as the weighted average of earning asset yield. Show all you work. Edit View Insert Format Tools Table D Question 18 High Street Bank has $125 million in commercial loans with an average duration of 0.45 years; $35 million in consumer loans with an average duration of 1.25 years; and $25 million in U.S. Treasury bonds with an average duration of 5 years. What will be the bank's weighted average duration of assets portfolio? Show all your work. Edit View Insert Format Tools Table Paragraph 12pt BIUA 2 T² (O A @D W JAN 10 5 pts N Question 19 6 pts A bank has an average asset duration of 5 years and an average liability duration of 3 years. This bank has total assets of $500 million and total liabilities of $250 million. Currently, market interest rates are 10 percent. If interest rates fall by 2 percent (to 8 percent), what is this bank's estimated change in economic value of equity (EVE)? You can use the current market interest rate as the weighted average of earning asset yield. Show all you work. Edit View Insert Format Tools Table

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18 weighted average duration of assets portfolio 0 45 x 125 million 1 25 x 35 million 5 ... View the full answer