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-What New Asset Duration Will Immunize the Balance Sheet

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 Assets  Duration  Market Value  Overnight Money 0.0 $3 Million  1-year T-Bonds 0.6$8 Million  Loans 2.20$20 Million  Mortgages 7.50$8 Million  Liabilities  Duration  Market Value  Checking Accounts 0.0$20 Million  Short-term CD’s 0.4$4 Million  Long-term CD’s 3.20$12 Million  Equity  $3 Million \begin{array} { l l l } \text { Assets } & \text { Duration } & \text { Market Value } \\\text { Overnight Money } & 0.0 & \text { \$3 Million } \\\text { 1-year T-Bonds } & 0.6 & \$ 8 \text { Million } \\\text { Loans } & 2.20 & \$ 20 \text { Million } \\\text { Mortgages } & 7.50 & \$ 8 \text { Million } \\\text { Liabilities } & \text { Duration } & \text { Market Value } \\\text { Checking Accounts } & 0.0 & \$ 20 \text { Million } \\\text { Short-term CD's } & 0.4 & \$ 4 \text { Million } \\\text { Long-term CD's } & 3.20 & \$ 12 \text { Million } \\\text { Equity } & &\text { \$3 Million } \\\end{array}
-What new asset duration will immunize the balance sheet?

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Definitions:

Corporate Blog

An official blog owned and published by a company to communicate directly with its customers or clients, often including updates, relevant industry news, and insights.

Time Value

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Average Opportunity Cost

The value of the foregone alternative that was not chosen when making a decision, averaged over all possible options.

Employee Hourly Wage

The amount of money that an employee is paid for each hour of work.

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