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7. The manager for Tyler Bank and Trust has the following assets and liabilitlues to manage: Asset Value Duration(in years) Bonds $75000000 9.00 Consumer loans

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7. The manager for Tyler Bank and Trust has the following assets and liabilitlues to manage: Asset Value Duration(in years) Bonds $75000000 9.00 Consumer loans S875,000,000 2.00 Commercial loans $700,000,000 5.00 Liabilities Value 1 Duration(in years) Demand deposits S300,000,000 1.00 Saving accounts ?? 0.50 If the manager wants a duration gap of 3.00, what level of saving accounts should the bank raise? Assume that any difference between assets and liabilities is held as cash (duration=0) 7. The manager for Tyler Bank and Trust has the following assets and liabilitlues to manage: Asset Value Duration(in years) Bonds $75000000 9.00 Consumer loans S875,000,000 2.00 Commercial loans $700,000,000 5.00 Liabilities Value 1 Duration(in years) Demand deposits S300,000,000 1.00 Saving accounts ?? 0.50 If the manager wants a duration gap of 3.00, what level of saving accounts should the bank raise? Assume that any difference between assets and liabilities is held as cash (duration=0)

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