An S&L Owns Mortgages That Have a Current Market Value

question 36

Multiple Choice

An S&L owns mortgages that have a current market value of $325 million. The duration of this portfolio of mortgages is 15.9 years. The S&L finances its mortgages by issuing CDs and the current value of these liabilities is $275 million. The duration of these liabilities is 4.6 years. What is the initial duration of the equity for the S&L?

• A) 103.25 years
• B) 78.05 years
• C) 25.30 years
• D) 53.00 years

Differentiate between operating, investing, and financing activities in the context of the statement of cash flows.

Analyze the effect of non-cash transactions and events on the statement of cash flows.

Calculate cash flows from operating activities using the indirect method.

Recognize the treatment of losses and gains from the sale of assets in the statement of cash flows.

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Definitions:

Market Trends

Patterns and tendencies observed in the market indicating the general direction in which a market or industry is moving.

Dark Side

Aspects of an entity or situation that are negative or harmful, often hidden or not openly acknowledged.

Buyer-supplier Relationships

The ongoing interactions and engagements between organizations purchasing goods or services and their providers, which can impact supply chain efficiency and product quality.

Single Sourcing

The procurement strategy of buying a particular type of product or service from only one supplier.