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Questions l and 2redfer to the folloving information Assets 2-year commercial loans: 10 percent annual fixed rate at par 1-year Treasury bills $450 million 1-year

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Questions l and 2redfer to the folloving information Assets 2-year commercial loans: 10 percent annual fixed rate at par 1-year Treasury bills $450 million 1-year CDs: 7 percent annual fixed rate at par Net Worth $400 million $100 million $50 million What is the duration of the commercial loans? A) 1.00 years B) 2.00 years C) 1.73 years D) 1.91 years E) 1.50 years 1. 2. What is the financial institution's leverage-adjusted duration gap A) 0.91 years B) 0.83 years C) 0.73 years D) 0.50 years 0

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