write my assignment 14868

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

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

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