Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem:
Assets
Par
Amount
Rate
Liabilities
2-year commercial loans, annual fixed rate, at par
$400 million
10 %
1-year CDs, annual fixed rate, at par
$450 million
7 %
1-Year Treasury bills
$100 million
Net Worth
$50 million
1. What is the duration of the commercial loans?
a. 1.00 years.
b. 2.00 years.
c. 1.73 years.
d. 1.91 years.
e. 1.50 years.
2. What is the FI's leverage-adjusted duration gap?
a. 0.91 years.
b. 0.83 years.
c. 0.73 years.
d. 0.50 years.
e. 0 years.
Summary of problem:
These short questions is from Finance as well as the questions are about computation of the duration of a commercial loan as well as leverage adjusted duration gap for bank with the given data.
in a typical month the any day corporation receives 100 checks totaling 67000. these are delayed three days on
Black River Adventures has net income of $1,718, interest expense of $815, sales of $19,950, and costs of $11,080. What is the amount of the depreciation expense if the firm's tax rate is 35 percent?
Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 18.00%, with interest paid monthly, what is the card's EFF%?
you bought one of great white shark repellant co.s 5.2 percent coupon bonds one year ago for 1055. these bonds make
The U.S. Treasury bill is yielding 5.1 percent while a stock with a beta of 1.08 is yielding 12.3 percent. What is the reward-to-risk ratio?
a number of major political and economic upheavals occurred in the 1990s. these events have driven many new trends in
Jones testified that Henry had performed the work improperly and that it would cost approximately $16,000 to correct the deficiencies in the work performed for James. If James refuses to pay any amount to Henry what recourse, if any, does Henry ha..
Assuming that interest rate risk is the only risk of concern, will the hedge described above be effective? Why or why not? Is there any other risk that deserves to be considered? If so, how would you hedge that risk?
clarion corp. has been selling electrical supplies for the past 20 years. the companys product line has changed very
what are three potential flaws with the regular payback method? does the discounted payback method correct all three
you have a choice of buying 1000 face value of a 10-year zero-coupon bond at a semiannually compounded yield to
red cat firecrackers is considering whether to build a large or small factory to produce its firecrackers. regardless
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd