Which of the following accurately defines duration analysis?
1) The weighted average of time until repayment of the price of a bond for a bond with a fixed cash flow
2) The difference between the amount of liabilities and the amount of assets on which interest rates are due to reset during a specific time period
3) What information do bank managers need to perform duration analysis? Check all that apply.
4) Amount of interest rate-sensitive assets
5) Market values of assets and liabilities
6) The weighted average of times until payment as a function of the present value of the payment
7) Comprehensive credit reports on their long-term borrowers