b) The manager for Tyler Bank and Trust has the following assets to manage:DurationDurationAssetBonds(in years)75,000,000 9.00Consumer Loans 875,000,000 2.00ValueLiabilityDemand Deposits 300,000,000 1.00Saving Accounts 1,347,000,000 0.50Value(in years)CommercialLoans700,000,000 5.00Compute the duration gap.

Duration Gap is the difference between the duration of assets and liabilities held by a financial…

b) The manager for Tyler Bank and Trust has the following assets to manage: Duration (in years) 75,000,000 9.00 Consumer Loans 875,000,000 2.00 Duration Asset Value (in years) Liability Demand Deposits 300,000,000 1.00 Saving Accounts 1,347,000,000 0.50 Value Bonds Commercial Loans 700,000,000 5.00 Compute the duration gap.

b) The manager for Tyler Bank and Trust has the following assets to manage: Duration (in years) 75,000,000 9.00 Consumer Loans 875,000,000 2.00 Duration Asset Value (in years) Liability Demand Deposits 300,000,000 1.00 Saving Accounts 1,347,000,000 0.50 Value Bonds Commercial Loans 700,000,000 5.00 Compute the duration gap.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 1MC

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