Duration Blue Steel Community Bank has the following market value balance sheet: Asset or Liability Market Value

Question:

Duration Blue Steel Community Bank has the following market value balance sheet:

Asset or Liability Market Value

(in $ millions)

Duration

(in years)

Federal funds deposits $ 31 0 Accounts receivable 590 .20 Short-term loans 340 .65 Long-term loans 98 5.25 Mortgages 485 12.85 Checking and savings deposits 645 0 Certificates of deposit 410 1.60 Long-term financing 336 9.80 Equity 153 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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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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Question Posted: Jul 10, 2024 08:01 AM

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Duration Blue Steel Community Bank has the following market value balance sheet: Asset or Liability Market Value

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Corporate Finance With Connect Access Card

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