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As the new management trainee the Lonetree Bank of Tennessee, given book value balance sheet, you have been asked by the bank president to determine

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As the new management trainee the Lonetree Bank of Tennessee, given book value balance sheet, you have been asked by the bank president to determine the current mark-to-market balance sheet and duration for the bank's assets and liabilities. Fill in the blanks with market values and durations. Some of this information is already filled in. The bank has only three types of assets and two types of deposits. Amounts are in $ thousands and duration in years. One-year loans were made recently at an interest rate of 8%; however, if these loans were made today the market interest rate (today's rate would be 7% - the loans will mature in exactly one year when all annual principal and interest will be received. Two-year loans were made when interest rates were at 8 1/2% however, if these loans were made today, the market rate would be 71/2 % the loans will mature in two years and will be amortized in two equal annual payments. One-Year CDs were deposited yesterday by one of the area's investors at an rate of 4%. Both principal and interest (of 4%) will be paid in one year at The market yield on these CDs is still 4% today

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