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Below is a condensed balance sheet of Twinkie Bank showing duration information about the individual asset and liability positions. What are the duration gap and
Below is a condensed balance sheet of Twinkie Bank showing duration information about the individual asset and liability positions. What are the duration gap and 1-year repricing gap (as a portion of assets) of the bank?
Assets (millions) Liabilities and Equity (millions) CashAssetsShsmaturinginlessthan1year(D=0.5years)Long-terminvestments(D=3.0years)Loansmaturinginlessthan1year$25$15$5$10DemandDeposits(Non-Interest)Chort-terminvestmentsCD(D=0.5years)CDsmaturinginmorethan1year(D=2.0years)FederalFunds(D=0.1years)$20$50$40$5 Loans maturing in more than 1Step by Step Solution
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