State Bank's balance sheet is listed below. Market yields and durations in years) are in parenthesis, and amounts are in millions. Assets Cash $31 Fed funds (2.05%, 0.02) 150 3-month T-bills (3.25%, 0.22) 200 8-year T-bonds (6.50%, 7.55) 250 5-year munis (7.20%, 4.25) 6-month consumer loans (5%, 0.42) 5-year car loans (6%, 3.78) 350 7-month C&I loans (4.8%, 0.55) 200 2-year C&I loans (4.15%, 1.65) Fixed-rate mortgages (5.10%, 0.48) (maturing in 5 months) 450 Fixed-rate mortgages (6.85%, 0.85) (maturing in 1 year) Fixed-rate mortgages (5.30%, 4.45) (maturing in 5 years) 275 Fixed-rate mortgages (5.40%, 18.25) (maturing in 20 years) 355 Premises and equipment 20 Total assets $3,156 Liabilities and Equity Demand deposits $253 Savings accounts (0.5%, 1.25) 50 MMDAs (3.5%, 0.50) (no minimum balance requirement) 460 3-month CDs (3.2%, 0.20) 175 1-year CDs (3.5%, 0.95) 375 5-year CDs (5%, 4.85) 350 Fed funds (2%, 0.02) 225 Repos (2%, 0.05) 290 6-month commercial paper (4.05%, 0.55) 300 Subordinate notes: 1-year fixed rate (5.55%, 0.92) 200 Subordinated debt: 7-year fixed rate (6.25%, 6.65) 100 Total liabilities $2,778 275 300 378 Equity Total liabilities and equity $3,156 Assume savings accounts and MMDAs are rate-sensitive liabilities. Chapter 9 Interest Rate Risk # 269 a What is Stan ning period is si b. What is State Bar