Solved

Duration Bank Has the Following Assets and Liabilities as of Year-End

Question 37

Multiple Choice

Duration Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually. Duration Bank has the following assets and liabilities as of year-end. All assets and liabilities are currently priced at par and pay interest annually. -What is the weighted average maturity of the assets of the FI? A) 2.0 years. B) 2.3 years. C) 2.5 years. D) 2.6 years.
-What is the weighted average maturity of the assets of the FI?


A) 2.0 years.
B) 2.3 years.
C) 2.5 years.
D) 2.6 years.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q11: A bank that finances long-term fixed-rate mortgages

Q17: The maturity of a portfolio of assets

Q32: The repricing gap does not accurately measure

Q34: If interest rates decrease 40 basis points

Q36: The gap ratio expresses the reprice gap

Q38: What is the impact over the next

Q39: The average maturity of the liabilities of

Q40: The term structure of interest rates assumes

Q42: Because of its simplicity,smaller depository institutions still

Q69: If the interest rate spread between rate