Question
National Tiny Bank (NTB) has $12,000 in total assets.Its asset portfolio currently has a duration of 4 years.NTB is considering buying a three year Treasury
National Tiny Bank (NTB) has $12,000 in total assets.Its asset portfolio currently has a duration of 4 years.NTB is considering buying a three year Treasury security that has a 7% annual coupon.(1) If the market value of the security is currently $875, what is the duration of the Treasury security?(2) If NTB buys the security, what will be the new duration of its asset portfolio?
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Investing In Financial Research A Decision Making System For Better Results
Authors: Cheryl Strauss Einhorn, Tony Blair
1st Edition
1501732757, 9781501732751
