The following balance sheet is for Besdall Community Bank a. What is the duration of Besdalls assets?
Question:
The following balance sheet is for Besdall Community Bank
a. What is the duration of Besdall’s assets?
b. What is the duration of Besdall’s liabilities?
c. Is Besdall Community Bank immune from interest-rate risk?
Transcribed Image Text:
Federal funds deposits Accounts-receivable loans Short-term loans Market Value Assets Duration Long-term loans Mortgages $ 43 million 0 615 million 4 months 345 million 9 months 55 million 197 million 5 years 15 years Liabilities and Equity Checking and savings deposits Certificates of deposit Long-term financing $490 million 0 370 million 18 months 250 million 10 years Equity 145 million
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