Calculate the repricing gap and the impact on net interest

Assignment Help Finance Basics
Reference no: EM132719894

Consider the following balance sheet positions for a financial institution.

Rate-sensitive assets = $ 250 million, Rate-sensitive liabilities = $ 125 million.

Rate-sensitive assets = $ 110 million, Rate-sensitive liabilities = $ 125 million.

Rate-sensitive assets = $ 250 million, Rate-sensitive liabilities = $ 140 million.

a. Calculate the repricing gap and the impact on net interest income of a 1 percent increase in interest rates for each position.

b. Calculate the impact on net interest income on each of the above situations assuming a 2 percent decrease in interest rates.

c. What conclusion can you draw about the repricing model from these results?

Reference no: EM132719894

Questions Cloud

Difference in the value proposition of company : What is the difference in the value proposition of each company with respect to their ETF offering?
Change of annual rate for portfolio : If the market interest rate is expected to be reduced in 2020, what will be the change of annual rate for each portfolio in 2020? Which portfolio is preferred?
What arguments were given for the speakers views : Using Internet resources, research script or video materials from the final 2008 presidential debate between Barack Obama and John McCain.
What is the product lines segment income : Assume the information for one segment of a company, What is the product line's segment income? Variable selling/administrative costs 130,000
Calculate the repricing gap and the impact on net interest : Consider the following balance sheet positions for a financial institution. Rate-sensitive assets = $ 250 million, Rate-sensitive liabilities = $ 125 million.
What are the April account balances : Bought $650 of supplies on account. Collected $ 4,000 cash on outstanding customer accounts. What are the April account balances
What is the current share price of stock : If you would rather have equal dividends in each of the next two years by creating homemade dividends, what would be the cash flow for Year 1 and Year 2?
Discussion about the interprofessional collaboration : This reflection journal also allows students to outline what they have discovered about their professional practice, personal strengths and weaknesses.
Create schedule calculating the balance in blue spruce : Net sales for 2020 were $79 million,Make a schedule calculating the balance in Blue Spruce Corp.'s Allowance for Doubtful Accounts at December 31, 2020

Reviews

Write a Review

Finance Basics Questions & Answers

  A firms recent dividend was 200 per share the stock is

a firms recent dividend was 2.00 per share. the stock is selling in the market place for 50.00 per share. if investors

  Are they capitated or fee-for-service

Here are the 2011 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars): Flexible Flexible Static Enrollment/Utilization) (Enrollment) Actual Budget Budget Budget Results $425 $200 $180 $300.

  Stock expected to grow after year 3

At what constant rate is the stock expected to grow after Year 3? Round your answer to two decimal places. Do not round your intermediate calculations.

  What will be the change in the firm total monthly profits

If the interest rate is 1% per month, what will be the change in the firm's total monthly profits on a present value basis if credit is offered to all customers

  What are sunland earnings per share and pe ratio

The company has 3,533,000 shares outstanding, and the year-end stock price is $52.62. What are Sunland's earnings per share and P/E ratio?

  Dinsmore artists international is in the business of

dinsmore artists international is in the business of managing singers and other artists in the entertainment industry.

  How long will take to pay off the mortgage

Your friend tells you he has a very simple trick for taking one-third off the time it takes to repay your mortgage: Use your Christmas bonus to make an extra.

  Should sunk costs be included when estimating cash flows

Should financing costs be considered when measuring a project's cash flows? Why or why not?

  An automobile company nissan has a temporary cash surplus

an automobile company nissan has a temporary cash surplus and lends its funds overnight through a repurchase agreement

  Which bank would you go to for a new loan

First United Bank charges 10.3 percent compounded semiannually. As a potential borrower, which bank would you go to for a new loan?

  Difference between the interest rates on blue hole

What is the difference between the interest rates on Blue Hole's bonds and those on federal government bonds of like terms?

  Define operating cash flow

Define operating cash flow. Should the company be able to spend this surplus as it likes?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd