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Question 18 What is the Duration Gap for the bank balance sheet shown below? Assets Amount...

Question 18

What is the Duration Gap for the bank balance sheet shown below?

Assets

Amount

Duration

Liabilities and Equity

Amount

Duration

Cash

80

0.00

Non-interest deposits

100

0.00

Securities

270

4.25

NOW checking

170

1.00

Loans, net

600

4.75

MMDA

330

0.25

Fed funds sold

0

CDs

160

1.75

Non-earning assets

50

Fed Funds purchased

150

0.00

$1,000

Equity

90

$1,000
A.

3.9975 years
B.

3.465 years
C.

6.00 years
D.

0.5852 years
E.

3.41 years

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Expert Solution

jeff jeffy answered 1 month ago
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