Question: Question 2 (10 points) The following financial statement is for the current year: Second National Bank Assets Duration Liabilities Duration Reserves 5,000,000 0.00 Checkable Deposits

 Question 2 (10 points) The following financial statement is for the

Question 2 (10 points) The following financial statement is for the current year: Second National Bank Assets Duration Liabilities Duration Reserves 5,000,000 0.00 Checkable Deposits 15,000,000 2.00 Securities Money Market 5,000,000 0.10 Deposits 2 years 10,000,000 7.00 Variables-rate 10,000,000 0.50 Residential Mortgages 2 years 5,000,000 2.70 Commercial Loans Interbank Loans 5,000,000 0.00 2 years 25,000,000 1 to 2 Years 5,000,000 1.30 Buildings, etc. 5,000,000 0.00 > 2 years 5,000,000 3.10 Bank Capital 5,000,000 4.00 Total $100,000,000 Total $100,000,000 Calculate the duration gap for the bank

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