Lambrook Bank has the following assets and liabilities: Asset A has a maturity of 3 years...
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Lambrook Bank has the following assets and liabilities: Asset A has a maturity of 3 years and a market value of $900,000 and asset B has a maturity of 7 years and a market value of $600,000. Liability X has a maturity of 1 years and a market value of $500,000 and liability Y has a maturity of 7 years and a market value of $700,000. What is the maturity gap of the bank ? Lambrook Bank has the following assets and liabilities: Asset A has a maturity of 3 years and a market value of $900,000 and asset B has a maturity of 7 years and a market value of $600,000. Liability X has a maturity of 1 years and a market value of $500,000 and liability Y has a maturity of 7 years and a market value of $700,000. What is the maturity gap of the bank ?
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ANSWER The maturity gap of a bank is calculated as the difference between the weighted average matur... View the full answer
Related Book For
Entrepreneurial Finance
ISBN: 978-1305968356
6th edition
Authors: J. Chris Leach, Ronald W. Melicher
Posted Date:
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