What maturity strategy is each bank following

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Question: Bacone National Bank has structured its investment portfolio, which extends out to four-year maturities, so that it holds about $11 million each in one-year, two-year, three-year, and four-year securities. In contrast, Dunham National Bank and Trust holds $36 million in one- and two-year securities and about $30 million in 8- to 10-year maturities. What maturity strategy is each bank following? Why do you believe that each of these banks has adopted the particular strategy it has as reflected in the maturity structure of its portfolio?

Reference no: EM131717772

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