Assets	Par Amount	Rate	Liabilities	Par Amount	Rate
2-year commercial loans, annual fixed rate, at par	$400 million	10 %	1-year CDs, annual fixed rate, at par	$450 million	7 %
1-year Treasury bills	$100 million		Net Worth	$50 million

What is the duration of the commercial loans?

a.

1.00 years.

b.

2.00 years.

c.

1.73 years.

d.

1.91 years.

e.

1.50 years.