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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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