Tiger State Bank
$\begin{array}{|l|l|l|}
\hline \text { Assets } & \text { Duration } & \text { Market Value } \
\hline \text { Overnight Money } & 0.0 & £ 3 \text { Million } \
\hline \text { 1-year T-Bonds } & 0.6 & £ 8 \text { Million } \
\hline \text { Loans } & 2.20 & £ 20 \text { Million } \
\hline \text { Mortgages } & 7.50 & £ 8 \text { Million } \
\hline & & \
\hline \text { Liabilities } & \text { Duration } & \text { Market Value } \
\hline \text { Checking Accounts } & 0.0 & £ 20 \text { Million } \
\hline \text { Short-term CD's } & 0.4 & £ 4 \text { Milion } \
\hline \text { Longterm CD's } & 3.20 & £ 12 \text { Million } \
\hline & & \
\hline \text {Equity}& & £ 3 \text { Million }\
\hline
\end{array}$ What new asset duration will immunize the balance sheet?

Question

Tiger State Bank
 $\begin{array}{|l|l|l|}
\hline \text { Assets } & \text { Duration } & \text { Market Value } \
\hline \text { Overnight Money } & 0.0 & £ 3 \text { Million } \
\hline \text { 1-year T-Bonds } & 0.6 & £ 8 \text { Million } \
\hline \text { Loans } & 2.20 & £ 20 \text { Million } \
\hline \text { Mortgages } & 7.50 & £ 8 \text { Million } \
\hline & & \
\hline \text { Liabilities } & \text { Duration } & \text { Market Value } \
\hline \text { Checking Accounts } & 0.0 & £ 20 \text { Million } \
\hline \text { Short-term CD's } & 0.4 & £ 4 \text { Milion } \
\hline \text { Longterm CD's } & 3.20 & £ 12 \text { Million } \
\hline & & \
\hline \text {Equity}& & £ 3 \text { Million }\
\hline
\end{array}$ What new asset duration will immunize the balance sheet?

Quizplus · Accepted Answer

The Answer of Tiger State Bank
 $\begin{array}{|l|l|l|}
\hline \text { Assets } & \text { Duration } & \text { Market Value } \
\hline \text { Overnight Money } & 0.0 & £ 3 \text { Million } \
\hline \text { 1-year T-Bonds } & 0.6 & £ 8 \text { Million } \
\hline \text { Loans } & 2.20 & £ 20 \text { Million } \
\hline \text { Mortgages } & 7.50 & £ 8 \text { Million } \
\hline & & \
\hline \text { Liabilities } & \text { Duration } & \text { Market Value } \
\hline \text { Checking Accounts } & 0.0 & £ 20 \text { Million } \
\hline \text { Short-term CD's } & 0.4 & £ 4 \text { Milion } \
\hline \text { Longterm CD's } & 3.20 & £ 12 \text { Million } \
\hline & & \
\hline \text {Equity}& & £ 3 \text { Million }\
\hline
\end{array}$ What new asset duration will immunize the balance sheet?

Tiger State Bank What New Asset Duration Will Immunize the Balance Sheet