You are a risk manager for Flagstar Savings and Loan (FSL). FSL's balance sheet is...
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You are a risk manager for Flagstar Savings and Loan (FSL). FSL's balance sheet is as follows (in millions of dollars). The duration of the auto loans is 3 years and the duration of the mortgages is 9.60 years. Both cash reserves and checking and savings have zero duration. The CDs have a duration of 2 years and the long-term financing has a 10-year duration. What is the duration of FSL's equity? Assets Liabilities Checking & Savings Cash Reserves 100 200 Auto Loans 200 Certificates of Deposit 150 Mortgages 400 Long-Term Financing 250 Total Assets 700 Total Liabilities Owner's Equity Total Liabilities and Equity 600 100 700 0 16.40 15.90 O 15.80 O 17.00 O 17.30
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