Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. assume a bank with the following balance sheet at

Assume a bank with the following balance sheet at the end of the financial year. Assets Amount...

80.2K

Verified Solution

Question

Finance

Assume a bank with the following balance sheet at the end of thefinancial year.

Assets Amount Avg Duration (in years) Liabilities Amount AvgDuration (in years)

Reserves $100 0 Deposits $2000 1.5

T-notes $350 3 L T Debt $1000 15

Loans $1725 6 Equity $500 0

Mortgages $1325 12

Calculate the duration of assets and liabilities and theduration gap.

Answer & Explanation Solved by verified expert
4.0 Ratings (471 Votes)
Total Asset value Value of Reserves Value of T notes Value of Loans Value of Mortgages 10035017251325 3500 Weight of Reserves Value of ReservesTotal Asset Value 1003500 00286 Weight of T notes Value of T notesTotal Asset Value 3503500    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Your book describes a treatment for -Thalassemia, a disease where the body cannot make the form...

Physics
1.2K views

A wooden ring whose mean diameter is 14.5 cm is wound with a closely spaced toroidal...

Biology
1.2K views

A toxin that binds specifically to voltage gated sodium channels in axons would be expected...

Physics
1.2K views

Water of mass 100g at a temperature of 100 C is converted into steam at...

Statistics
1.2K views

Monsoon Rains The summer monsoon rains in India follow approximately a Normal distribution with mean...

Algebra
1.2K views

During a football season Lindsey rushed for 300 yards in the same time AJ rushed...

Algebra
1.2K views

Multiply and simplify 40 3 2 8n 16 n 47n 5 9 8n 83 16...

Algebra
1.2K views

ow much money should be deposited today in an account that earns 5 compounded semiannually...

Accounting
1.2K views

A company operates a job costing system. Job 812 requires $60 of direct materials, $40...

Accounting
1.2K views

What is the average tax rate of amarried couple filing separately, one spouse with taxable...

Accounting
1.2K views

Carlson's (a sole proprietor) general business credit for the current year is $154,700. His net...

Accounting
1.2K views

Manufacturing overhead data for the production of Product H by Shakira Company, assuming the company...