Sun Rise Bank holds assets and liabilities whose average durations and pounds amounts are shown in this table: Average Duration (Years) Assets and Liability Items Amount (£) (Millions) Investment-grade bonds Commercial Loans 19.00 75.00 8.00 300.00 Consumer Loans 9.00 450.00 Deposits Non-Deposit Borrowings 3.00 700.00 1.00 50.00 a. What is the weighted average duration of Sun Rise Bank's: i) ii) Asset portfolio? Liability portfolio? b. What is the leverage-adjusted duration gap of Sun Rise Bank?

Sun Rise Bank holds assets and liabilities whose average durations and pounds amounts are shown in this table: Average Duration (Years) Assets and Liability Items Amount (£) (Millions) Investment-grade bonds Commercial Loans 19.00 75.00 8.00 300.00 Consumer Loans 9.00 450.00 Deposits Non-Deposit Borrowings 3.00 700.00 1.00 50.00 a. What is the weighted average duration of Sun Rise Bank's: i) ii) Asset portfolio? Liability portfolio? b. What is the leverage-adjusted duration gap of Sun Rise Bank?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.3.3MBA

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The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1,2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securitiesthat is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be helduntil their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costingP29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, andtreasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bondretirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds payable…
The following information is also available: 1. Current assets include cash P3,800, accounts receivables P18,500, note receivables (maturity date is on July 1, 2023) P10,000 and land P12,000. 2. Long term investments include a P4,600 investment in fair value though other comprehensive income securities that is expected to be sold in 2022 and a P9,000 investment in AllDay company bonds that are expected to be held until their December 31, 2029 maturity date. 3. Property and equipment include buildings costing P63,400, inventories costing P30,500 and equipment costing P29,600. 4. Intangible assets include patents that cost P8,200 and on which P2,300 amortization have accumulated, and treasury shares that costs P1,800. 5. Other assets include prepaid insurance (which expires on November 30, 2022) P2,900, sinking fund for bond retirement P7,000 and trademarks that cost P5,200 and on which P1,500 amortization has accumulated. 6. Current liabilities include accounts payable P19,400, bonds…
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