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Estimate the duration of Loan M Bank Balance Sheet Cash = $ 50 Loan M (7%, 6 years) = $200 Deposit N (3 years, 2%)

Estimate the duration of Loan M

Bank Balance Sheet

Cash = $ 50

Loan M (7%, 6 years) = $200

Deposit N (3 years, 2%) = $ 200

Equity = $ 50

Total Assets = $250

Total Liabilities = $ 250

3.1 years

4.1 years

5.1 years

6.1 years

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