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Use the follwing information about a hypothetical government security dealer named MP Jorganson to answer questions. (Market yields are in parentheses) Assets $m Liabilities $m
Use the follwing information about a hypothetical government security dealer named MP Jorganson to answer questions.
(Market yields are in parentheses)
Assets | $m | Liabilities | $m |
Cash | 10 | Overnight interbank borrowing (7.00%) | 170 |
T-notes 1month (7.05%) | 75 | 7-year fixed-rate subordinated debt(8.55%) | 150 |
T-notes: 3 months (7.25%) | 75 | ||
T-bonds: 2-year (7.50%) | 50 | Equity | 15 |
T-bonds: 10-year (8.96%) | 100 | ||
Corporate bonds: 5-year maturity with interest reset every 3 months (8.20%) | 25 | ||
Total Assets | 335 | Total Liabilities and equity | 335 |
1. Calculate the maturity gap from the given information.
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