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What is the duration of the assets

Blue Steel Community has the following market value balance sheet:

Assets/Liability Market value(in $ millions) Duration (in years)

Federal Funds Deposit $31 0
Accounts Receicables 630 .20
Short-terms Loans 390 .65
Long-term Loans 98 5.25
Mortgages 346 12.85
Checking and savings deposits 585 0
Certificates of deposit 310 1.60
Long-term Financing 305 9.80
Equity 295 N/A

a. What is the duration of the assets?

b. What is the duration of the liabilities?

c. Is the bank immune to interest rate risk?

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: What is the duration of the assets

Reference No:- TGS01620824

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: What is the duration of the assets

Reference No:- TGS01620824

Recent Questions Asked Accounting Basics

Q : Estimate the total cost of human resource

Q : What is the price of the bonds

Q : Contribution format variable costing income statement

Q : Nature and amount of gain or loss on the sale

Q : What is the duration of the assets

Q : How controllable costs-non controllable costs impact budget

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