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

question 76

Multiple Choice

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 liabilities of the FI?

• A)3.67 years.
• B)3.30 years.
• C)3.00 years.
• D)5.00 years.
• E)4.33 years.

---

Definitions:

Blinking

A rapid opening and closing of the eyelids which helps to spread tears across and remove irritants from the surface of the cornea and conjunctiva.

Squinting

The partial closing of one's eyes to improve focus or reduce light exposure, or a misalignment of the eyes where they do not aim simultaneously at the same point.

Ear Ossicles

Three small bones in the middle ear known as the malleus, incus, and stapes, which transmit sound vibrations to the inner ear.

Perilymph

A fluid in the inner ear. When this fluid moves, it activates hearing and equilibrium receptors.