Question
Estimate the duration of Loan M Bank Balance Sheet Cash = $ 50 Loan M (7%,...
Estimate the duration of Loan M
|
Bank Balance Sheet |
|
|
Cash = $ 50 Loan M (7%, 6 years) = $200 |
Deposit N (3 years, 2%) = $ 200 Equity = $ 50 |
|
Total Assets = $250 |
Total Liabilities = $ 250 |
|
3.1 years |
||
|
4.1 years |
||
|
5.1 years |
||
|
6.1 years |
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