A.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).

A.What level of Saving Accounts should the bank raise to be immunized from interest rate risk?

The. manager for Tyler Bank and Trust has the following assets to manage: Duration Asset Value (in years) Liability Value Bonds 1 15 ,000,000 9 .00 Demand Deposits 690 ,000 ,000 Consumer Loans 345 ,000 ,000 2.00 Saving Accounts ?? Commercial Loans 575,000,000 5.00 Duration (in years} 1 .00 0.50