Problem 1: A bank has three assets. It has $65 million invested in consumer loans with a 6 month duration, $26 million invested in T-Bonds with a 12 year duration and $39 million in 1 year maturity T-Bills. What is the duration of the bank's asset portfolio?
Problem 2: A bank has book value of assets equal to $900 million and market value of assets equal to $1,100 million. The bank has book value of liabilities of $700 million and market value of liabilities equal to $800 million. The bank's market to book ratio is?