First Duration Bank Has the Following Assets and Liabilities on Its

Multiple Choice

First Duration Bank has the following assets and liabilities on its balance sheet $$\begin{array} { | l | l | l | l | l | l | } \hline{ \text { Assets } } & { \begin{array} { c } \text { Par } \\\text { Amount }\end{array} } & \text { Rate } & \text { Liabilities } & \begin{array} { c } \text { Par } \\\text { Amount }\end{array} & \text { Rate } \\\hline \begin{array} { l } \text { 2-year commercial } \\\text { loans, annual fixed } \\\text { rate, at par }\end{array} & \$ 400 \text { million } & 10 \% & \begin{array} { l } \text { 1-year CDs, } \\\text { annual fixed } \\\text { rate, at par }\end{array} & \$ 450 \text { million } & 7 \% \\\hline \text { 1-year Treasury bills } & \$ 100 \text { million } & & \text { Net Worth } & \$ 50 \text { million } & \\\hline\end{array}$$
-What is the duration of the commercial loans?

A) 1.00 years.
B) 2.00 years.
C) 1.73 years.
D) 1.91 years.
E) 1.50 years.