Lambrook Bank has the following assets and liabilities: • Asset A has a maturity of 5 years and a market value of $700,000 and asset B has a maturity of 5 years and a market value of $800,000. • Liability X has a maturity of 2 years and a market value of $900,000 and liability Y has a maturity of 3 years and a market value of $700,000. What is the maturity gap of the bank? Round your final answer to 2 decimal places.
Lambrook Bank has the following assets and liabilities: • Asset A has a maturity of 5 years and a market value of $700,000 and asset B has a maturity of 5 years and a market value of $800,000. • Liability X has a maturity of 2 years and a market value of $900,000 and liability Y has a maturity of 3 years and a market value of $700,000. What is the maturity gap of the bank? Round your final answer to 2 decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Lambrook Bank has the following assets and liabilities:
• Asset A has a maturity of 5 years and a market value of $700,000 and asset B has a maturity of
5 years and a market value of $800,000.
• Liability X has a maturity of 2 years and a market value of $900,000 and liability Y has a
maturity of 3 years and a market value of $700,000.
What is the maturity gap of the bank ?
Round your final answer to 2 decimal places.
E.g. if the final answer is -3.59 years, type -3.59 in the answer box. If the final answer is 3.59 years,
type 3.59 in the box.
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