-What Is This FI's Maturity Gap?
A)4

question 62

Multiple Choice

$$\begin{array} { | l | r | l | l | r | l | } \hline \text { Assets } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} & \text { Liabilities } & \begin{array} { l } \text { Amount } \\\text { (\$ millions) }\end{array} & \begin{array} { l } \text { Annual } \\\text { Rate }\end{array} \\\hline \text { 1-year bonds } & \$ 60 & 7 \% & \text { 1-year CD } & \$ 50 & 5 \% \\\hline \text { 10-year loan } & \$ 40 & 12 \% & \text { 2-year CD } & \$ 40 & 6 \% \\\hline & & & \text { Equity } & \$ 10 & \\\hline \text { Total } & \$ 100 & & \text { Total } & \$ 100 & \\\hline\end{array}$$
-What is this FI's maturity gap?

• A)4.00 years.
• B)4.28 years.
• C)3.16 years.
• D)4.06 years.
• E)5.10 years.

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Definitions:

Electrocardiograph

An instrument that measures and displays the waves of electrical impulses responsible for the cardiac cycle.

Cardiac Cycle

The sequence of contraction and relaxation that makes up a complete heartbeat.

Electrical Impulses

Bioelectrical signals that are crucial for the functioning of nerves and muscles in the body.

Electrocardiography

Electrocardiography is a medical test that measures the electrical activity of the heart to detect heart diseases and monitor heart health.