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Rate Duration (Years) Liabilities Market Duration and Market Assets Value Rate (Years) Equity Value Time Cash 150 Deposits $ 500 Loans $ 675 10% 250

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Rate Duration (Years) Liabilities Market Duration and Market Assets Value Rate (Years) Equity Value Time Cash 150 Deposits $ 500 Loans $ 675 10% 250 CDs $ 400 T-Bonds $ 175 5% 500 Equity $ 100 Total $ 1.000 $ 1,000 What is the weighted average duration of assets? A 4% 6% 1.25 3.00 A. 5.00 years B. 7.50 years OC. 3.75 years OD.2.56 years OE. 4.85 years

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