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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Look again at Problem 1.8 on page 309. If RNB’s assets have an average duration of five years and its liabilities have an average duration of three years, what is RNB’s duration gap?
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Problem 1.8
The following entries (in millions of dollars) are from the balance sheet of Rivendell National Bank (RNB):

a. Use the entries to construct a balance sheet similar to the one in Table 10.1 on page 281, with assets on the left side of the balance sheet and liabilities and bank capital on the right side.
b. RNB’s capital is what percentage of its assets?
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