Question 4 options:

1)

6%

2)

5.50%

3)

9.14%

4)

3.74%

5)

3.15%

What is the Average Asset Yield? Assets Market Rate Duration Liabilities Market Value Rate Duration Value $250,000 Cash Small time $200,000 2.5% 2 T-bond 3.0% 3.3 deposits Large CDs Transaction 4.0% $325,000 $425,000 5 $200,000 $520,000 Comm. Loan 6.5% 5.2 2.0% 3 Accounts Total Assets $1,000,000 Total $920,000 Liabilities $80,000 Equity (EVE) Total $1,000,000 Liabilities and Equity