Question
Silver National Bank holds assets and liabilities whose average durations and dollar amounts are as shown in this table: Asset and Liability Items Avg. Duration
- Silver National Bank holds assets and liabilities whose average durations and dollar amounts are as shown in this table:
| Asset and Liability Items | Avg. Duration (years) | Dollar Amount (millions) |
|
|
|
|
| Investment Grade Bonds | 15.00 | $65.00 |
| Commercial Loans | 3.00 | $400.00 |
| Consumer Loans | 7.00 | $250.00 |
| Deposits | 1.25 | $600.00 |
| Nondeposit Borrowings | 0.50 | $50.00 |
What is the weighted average duration of Silvers s asset portfolio and liability portfolio? What is the leverage-adjusted duration gap?
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