DurationAmount$75 million$750 millionAssetsRateCash1.75 years12 percent9 percentLoansTreasuries$175 million7.00 yearsLiabilities and EquityTime Deposits1.75 vears7 percent8 percent$350 millionCDs$575 million2.50 vearsEquityS75 millionCalculate the duration of the liabilities to four decimal places.O 1.75 years.2.22 years.2.125 years.2.50 years.2.05 years.

The duration of liabilities is calculated as sum of weighted average of duration of individual…

Assets Amount Rate Duration Cash $75 million Loans $750 million $175 million 12 percent 9 percent 1.75 years 7.00 years Treasuries Liabilities and Equity Time Deposits $350 million 7 percent 8 percent 1.75 years 2.50 years CDs $575 million Equity S75 million Calculate the duration of the liabilities to four decimal places. O 1.75 years. 2.22 years. 2.125 years. 2.50 years. O 2.05 years.

Assets Amount Rate Duration Cash $75 million Loans $750 million $175 million 12 percent 9 percent 1.75 years 7.00 years Treasuries Liabilities and Equity Time Deposits $350 million 7 percent 8 percent 1.75 years 2.50 years CDs $575 million Equity S75 million Calculate the duration of the liabilities to four decimal places. O 1.75 years. 2.22 years. 2.125 years. 2.50 years. O 2.05 years.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

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