You have been hired as a risk manager for Acorn Savings and Loa. Currently, Acorn’s balance sheet is as follows (in millions of dollars)

You have been hired as a risk manager for Acorn Savings and Loa. Currently, Acorn’s balance sheet is as follows (in millions of dollars):

Assets                                                                 Liabilities

Don't use plagiarized sources. Get Your Custom Essay on
You have been hired as a risk manager for Acorn Savings and Loa. Currently, Acorn’s balance sheet is as follows (in millions of dollars)
Just from $13/Page
Order Essay

Cash reserves                     51.2                         Checking and savings                        78.7

Auto loans                           95.3                         Certificates of deposit                         101.5

Mortgages                           150.1                       Long-term financing                            98.3

Total Assets                         296.6                      Total liabilities                                     278.5

                                                                            Owner’s equity                                   18.1

                                                                            Total liabilities and equity                   296.6

a. What is the duration of​ Acorn’s equity?

The duration of the assets is ___ years. ​(Round to two decimal​ places.)

The duration of the liabilities is _____ years. ​(Round to two decimal​ places.)

The duration of the equity is ____ years. ​(Round to two decimal​ places.)

b. Suppose Acorn experiences a rash of mortgage​ prepayments, reducing the size of the mortgage portfolio from $ 150.1

Order your essay today and save 20% with the discount code: GREEN

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp