Question: (Do not include units in your answer. Include negative sign if necessary.) Highland Bank has the following assets and liabilities and respective duration: Highland Bank

(Do not include units in your answer. Include negative sign if necessary.) Highland Bank has the following assets and liabilities and respective duration: Highland Bank wishes to immunise the balance sheet against interest rate shocks by on-balance sheet adjustment. It wants to do this by changing the composition of assets on its balance sheet to attain the appropriate duration. What must be the targeted duration of assets to immunise the balance sheet? (Give your answer to 3 decimal places. Do not include the unit "years" in your answer.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

(Do not include units in your answer. Include negative sign if necessary.) Magellan Bank has the following balance sheet: Suppose interest rates rise such that the average yield on rate-sensitive...

(Do not include units in your answer. Include negative sign if necessary.) Pacific Bank has the following balance sheet. Market yields and durations (in years) are in parenthesis and amounts are in...

1. Research has shown that the relationship between eye contact and deception a. is nonexistent b. is positive in that eye contact increases as the level of deception rises c. is negative in that eye...

Monetary Policy Problem Set1 1. Suppose the Fed decreases the discount rate. As a result of this policy, what will happen to the money supply [select one)? a. Money Supply increases. b. Money Supply...

Highland Bank has the following assets and liabilities and respective duration: $ millions Years Assets 220 1.441 Liabilities 200 0.553 Equity 20 Highland Bank wishes to immunise the balance sheet...

I posted two annual reports one is Microsoft and other one is Game Stop can i plzz know what are the similarity and difference Dividends we paid cast dividends of $40.5 million, $17.4 milion and...

I posted two annual reports one is Microsoft and other one is Game Stop can i plzz know what are the similarity and difference can i plzz get similarities and. difference from these two reports.......

If I need to I can list these questions separately and also provide more of the annual report if needed. Thanks for the help! I need help. I have been asked to review the the 2018 Annual Report (Form...

The marketing firm Novak, Inc., had the following information available concerning its cash account for the month of May: Balance per Novaks books, May 31 ....... $1,375.21 Outstanding checks...

Find the equation and put it in quadratic form . 3 - 1 6 | | 00 |

22. Raleigh plc has an investment with a carrying value (equity method) on its books of 170,000 representing a 30% interest in Borg Company, which suffered a 620,000 loss this year. How should...

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...