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Hi, can you please help me with the following question? Thank you The balance sheet for FIM Bank, Inc. is presented below ($ millions): Assets

Hi, can you please help me with the following question? Thank you

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The balance sheet for FIM Bank, Inc. is presented below ($ millions): Assets Liabilities and equity Cash $60 Core deposits $40 Interbank $40 Interbank borrowing $100 lending Loans $210 Euro CDs $260 (floating) Loans $130 Equity $40 (fixed) Total assets $440 Total liabilities and $440 equity Notes to the balance sheet: The interbank cash rate is 7.5 per cent, the floating loan rate is (Bank Base Rate (BBR)+3 per cent), and currently BBR is 10 per cent. Fixed rate loans have five-year maturities, are priced at par, and pay 11 per cent annual interest. The principal is repaid at maturity. Core deposits are fixed rate for two years at 7 per cent paid annually. The principal is repaid at maturity. Euro CDs currently yield 8 per cent. a. What is the duration of the fixed-rate loan portfolio of FIM Bank? b. If the duration of the floating-rate loans and interbank lending is 0.25 year, what is the duration of FIM's assets

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