Tiger State Bank Calculate the Duration of Tiger State Bank's Assets and Liabilities

question 1

Essay

Tiger State Bank
$\begin{array} { | l | l | l | } \hline \text { Assets } & \text { Duration } & \text { Market Value } \\\hline \text { Overnight Money } & 0.0 & £ 3 \text { Million } \\\hline \text { 1-year T-Bonds } & 0.6 & £ 8 \text { Million } \\\hline \text { Loans } & 2.20 & £ 20 \text { Million } \\\hline \text { Mortgages } & 7.50 & £ 8 \text { Million } \\\hline & & \\\hline \text { Liabilities } & \text { Duration } & \text { Market Value } \\\hline \text { Checking Accounts } & 0.0 & £ 20 \text { Million } \\\hline \text { Short-term CD's } & 0.4 & £ 4 \text { Million } \\\hline \text { Long-term CD's } & 3.20 & £ 12 \text { Million } \\\hline & & \\\hline \text { Equity } & & £ 3 \text { Million } \\\hline\end{array}$
Calculate the duration of Tiger State Bank's assets and liabilities.

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Definitions:

Veto Power

The authority to reject or block a decision, proposal, or law, often held by an executive branch over legislative actions.

Legislative Branch

The part of government responsible for making laws, consisting of legislatures or parliaments.

Contract Clause

The clause in the U.S. Constitution that prohibits the government from unreasonably interfering with an existing contract.

United States Constitution

The supreme law of the United States, establishing the framework of the national government and defining the rights of citizens.