Blue Moon National Bank holds assets and liabilities whose a…
Blue Moon National Bank holds assets and liabilities whose average durations and dollar amounts are as shown in this table: Assett & Liability Items Avg. Duration (years) Dollar Amount (millions) Investment-grade bonds 15 $65.00 Commercial loans 3 400 Consumer loans 7 250 Deposits 1.25 600 Non-deposit borrowings 0.50 50 What is the weighted-average duration of Blue Moon’s asset portfolio and liability portfolio?
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