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The manager for Tyler Bank and Trust has the following assets to manage: Asset Value Value 115,000,000 345,000,000 Duration (in years) 9.00 2.00 Duration (in

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The manager for Tyler Bank and Trust has the following assets to manage: Asset Value Value 115,000,000 345,000,000 Duration (in years) 9.00 2.00 Duration (in years) 1.00 0.50 Liability Demand Deposits Saving Accounts Bonds Consumer Loans Commercial Loans 690,000,000 ?? 575,000,000 5.00 A. If the manager wants a duration gap of 3.00, what level of Saving Accounts should the bank raise? Assume that any difference between assets and liabilities is held as cash (duration=0). | B. What level of Saving Accounts should the bank raise to be immunized from interest rate risk

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