The numbers provided are in millions of dollars and reflect market values: Cash T-Bills 30 days (4.5%, PAR) years T-Bills 91 days (5.0%, PAR) duration=3.5 years Commercial Loans 150 (Avg. maturity = 9.0 years) (Avg. duration = 7.5 years) Consumer Loans 150 (Avg. maturity = 6.0 years) (Avg. duration=4.0 years) 20 Deposits 200 Mortgage Loans - Fixed Rate (Avg. maturity = 30 years) (Avg. Duration = 25 years) 130 TOTAL ASSETS EQUITY 830 200 50 (Historical avg. maturity=4 60 (Historical avg. 300 Certificates of Deposit (Avg. maturity=6 months) (Avg. duration=6 months) 200 Short-term Debt (Avg. maturity 4 years) Long-term Debt 200 (Avg. maturity=15 years) (Avg. duration=12 years) Equity 830 TOTAL LIABILITY & A. The short-term debt of the DePaul University Bank consists of 4- year bonds paying an annual coupon of 4 percent and selling at par. What is the duration of the short-term debt?

The numbers provided are in millions of dollars and reflect market values: Cash T-Bills 30 days (4.5%, PAR) years T-Bills 91 days (5.0%, PAR) duration=3.5 years Commercial Loans 150 (Avg. maturity = 9.0 years) (Avg. duration = 7.5 years) Consumer Loans 150 (Avg. maturity = 6.0 years) (Avg. duration=4.0 years) 20 Deposits 200 Mortgage Loans - Fixed Rate (Avg. maturity = 30 years) (Avg. Duration = 25 years) 130 TOTAL ASSETS EQUITY 830 200 50 (Historical avg. maturity=4 60 (Historical avg. 300 Certificates of Deposit (Avg. maturity=6 months) (Avg. duration=6 months) 200 Short-term Debt (Avg. maturity 4 years) Long-term Debt 200 (Avg. maturity=15 years) (Avg. duration=12 years) Equity 830 TOTAL LIABILITY & A. The short-term debt of the DePaul University Bank consists of 4- year bonds paying an annual coupon of 4 percent and selling at par. What is the duration of the short-term debt?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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