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0.0 WindCool Bank reports the following balance sheet and duration information: Assets Duration Book Value Market Value Overnight Money $3 Million $3 Million Mortgages 0.6
0.0 WindCool Bank reports the following balance sheet and duration information: Assets Duration Book Value Market Value Overnight Money $3 Million $3 Million Mortgages 0.6 $7 Million $8 Million Loans 2.46 $18 Million $20 Million 2-year Zero-coupon Bond ?? $8.5 Million $9 Million Liabilities Checking Accounts Short-term CD's Long-term CD's Duration 0.0 1.0 6.0 Book Value $9 Million $16 Million $8 Million Market Value $9 Million $18 Million $9 Million Equity $3.5 Million $4 Million (1) Compute the duration of assets and liabilities respectively. (ii) Advise whether the assets and liability are well matched for immunity to changing interest rates
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