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Blue Steel Community Bank has the following market value balance sheet: Asset or Liability Market Value (in $ millions) Duration (in years) Federal funds deposits
| Blue Steel Community Bank has the following market value balance sheet: |
| Asset or Liability | Market Value (in $ millions) | Duration (in years) | ||||
| Federal funds deposits | $ | 27.5 | 0 | |||
| Accounts receivable | 612.0 | .90 | ||||
| Short-term loans | 343.1 | 1.35 | ||||
| Long-term loans | 102.2 | 5.95 | ||||
| Mortgages | 489.9 | 13.55 | ||||
| Checking and savings deposits | 620.0 | 0 | ||||
| Certificates of deposit | 412.8 | 2.30 | ||||
| Long-term financing | 337.4 | 10.50 | ||||
| Equity | 204.5 | N/A | ||||
| a. | What is the duration of the assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What is the duration of the liabilities? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Contemporary Economics An Applications Approach
Authors: Robert Carbaugh
8th Edition
1138652199, 978-1138652194
