Blue Steel Community Bank has the following market value balance sheet: a. What is the duration of
Question:
Blue Steel Community Bank has the following market value balance sheet:
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?
Transcribed Image Text:
Asset or Liability Federal funds deposits Accounts receivable Short-term loans Long-term loans Mortgages Checking and savings deposits Certificates of deposit Long-term financing Equity Market Value (in millions) $ 43 555 340 103 498 605 395 285 254 Duration (in years) 0 20 65 5.25 12.85 0 1.60 9.80 N/A
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (5 reviews)
The duration of a portfolio of assets or liabilities is the weighted average of the duration of the ...View the full answer
Answered By
John Aketch
I am a dedicated person with high degree of professionalism, particularly in academic writing. My desire is to is to make students excel in their academic endeavor.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Business questions
-
Blue Steel Community Bank has the following market value balance sheet: 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?...
-
Blue Steel Community Bank has the following market value balance sheet: 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?...
-
A financial institution has the following market value balance sheet structure: a. The bond has a 10-year maturity, a fixed-rate coupon of 10 percent paid at the end of each year, and a par value of...
-
It has been reported that the 49,600 employees of United Airlines are distributed among the following corporate functions: For the sample space consisting of United employees: a. Draw a Venn diagram...
-
Visit the website of the National Academies (comprised of four organizations: the National Academy of Sciences, the National Academy of Engineering, the Institute of Medicine and the National...
-
The file Domestic Beer contains the percentage alcohol, number of calories per 12 ounces, and number of carbohydrates (in grams) per 12 ounces for 157 of the best-selling domestic beers in the United...
-
The stockholders equity section of Rodman Corporation as of December 31, 1996, follows. Common stock $ 80,000 Additional paid-in capital (C/S) 10,000 Retained earnings 60,000 Total stockholders...
-
The King Construction Company began work on a contract in 2007. The contract price is $4,000,000, and the company uses the percentage-of-completion method. Other information relating to the contract...
-
Determine whether the following transactions would result in an adjusting entry using the dropdowr menus provided
-
Explain why a router using link-state routing needs to receive the whole LSDB before creating and using its forwarding table. In other words, why cant the router create its forwarding table with a...
-
Wilder Home Products, Inc., recently issued $2 million worth of 3 percent convertible debentures. Each convertible bond has a face value of $1,000. Each convertible bond can be converted into 18.4...
-
Agawal, Inc., recently issued bonds with a conversion ratio of 15.2 and a par value of $1,000. If the stock price at the time of the bond issue was $46.34, what was the conversion premium?
-
A survey conducted by the National Endowment for the Arts asked, Have you read a book within the last year? What response bias might arise from this question?
-
the assessment include developing gantt chart, work breakdown structure and and all task 3 are related to its respective task 2. all the instructions are given in the assignment itself. Assessment...
-
Mens heights are normally distributed with mean 68.6in. and standard deviation 2.8in. Air Force Pilots The U.S. Air Force required that pilots have heights between 64 in. and 77 in. Find the...
-
Swain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city....
-
ACC1810 - PRINCIPLES OF FINANCIAL ACCOUNTING Project 11: Chapter 11 - Stockholders' Equity Part B: Financial Statements The accounts of Rehearsal Corporation are listed along with their adjusted...
-
Match the term to the description. Outcome evaluation Focuses on the accomplishments and impact of a service, program, or policy and its effectiveness in attaining its outcomes set prior to...
-
The table gives the position s(t) of an object moving along a line at time t, over a two-second interval. Find the average velocity of the object over the following intervals. a. [0, 2] b. [0, 1.5]...
-
If someone's Z-score for a variable was 0.67. Their score is a significant extreme score. Their score is not significant. O Their score is slightly above average. O Their score is an outlier.
-
Option Rise true or false: The unsystematic risk of a share of stock is irrelevant in valuing the stock because it can be diversified away; therefore, it is also irrelevant for valuing a call option...
-
Option pricing suppose a certain stock currently sells for $30 per share if a put option and a call option are available with $30 exercise prices, which do you think will sell for more, the put or...
-
Option pricing suppose a certain stock currently sells for $30 per share if a put option and a call option are available with $30 exercise prices, which do you think will sell for more, the put or...
-
Bought an old van for 4000 from Peters promising to pay laterwhat is the transactions
-
Company has a following trade credit policy 1/10 N45. If you can borrow from a bank at 9,5% annual rate, would it be beneficial to borrow money and pay off invoices earlier?
-
Given the following exchange rates, which of the multiple-choice choices represents a potentially profitable inter-market arbitrage opportunity? 129.87/$1.1226/$0.00864/ 114.96/ B $0.8908/ (C)...
Study smarter with the SolutionInn App