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-What Is the Duration of the Liabilities?
A)0

Question 74

Multiple Choice

 Assets  Amount  Proportion  Duration  Prop. × Dur  30-day T-bills 300300÷1,7300.173430+3600.0830.144442 90-day T-bills 550550÷1.7300.317990÷3600.2500.079475 2-year T-notes 700700÷1,7300.4046720÷3602.0000.8092 180-day munis 180180÷1,7300.1041180÷3600.5000.05205 Total $1,730 Weighted average duration of assets 0.9552\begin{array} { | l | r | l | l | l | l | l | } \hline{ \text { Assets } } & \text { Amount } & & \text { Proportion } & & \text { Duration } & \text { Prop. } \times \text { Dur } \\\hline \text { 30-day T-bills } & 300 & 300 \div 1,730 & 0.1734 & 30 + 360 & 0.083 & 0.144442 \\\hline \text { 90-day T-bills } & 550 & 550 \div 1.730 & 0.3179 & 90 \div 360 & 0.250 & 0.079475 \\\hline \text { 2-year T-notes } & 700 & 700 \div 1,730 & 0.4046 & 720 \div 360 & 2.000 & 0.8092 \\\hline \text { 180-day munis } & 180 & 180 \div 1,730 & 0.1041 & 180 \div 360 & 0.500 & 0.05205 \\\hline \text { Total } & \$ 1,730 & \text { Weighted average duration of assets } & & &&\mathbf { 0 . 9 5 5 2 } \\\hline\end{array}
-What is the duration of the liabilities?


A) 0.708 years.
B) 0.354 years.
C) 0.350 years.
D) 0.955 years.
E) 0.519 years.

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