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.

Question

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.

Quizplus · Accepted Answer

Weighted-average maturity of assets
11efb861_60b9_9c45_9137_cf3efec50711_TB1314_00 
The weighted average maturity of assets is 2.60 years.

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