User Account

All Pages

How bank can hedge an interest rate risk by restructuring

Assignment Help Financial Accounting
Reference no: EM132887712

A bank has mortgage loans with a current market value of 325 million euros. The duration of this mortgage loan portfolio is 15.9 years. This bank finances its mortgages by issuing CDs and the current value of these debts is 275 million euros. The duration of these commitments is 4.6 years.

Problem a) What is the initial duration of equity of this bank?

Problem b) Explain how this bank can hedge an interest rate risk by restructuring its balance sheet?

Reference no: EM132887712

Questions Cloud

What price should norah inc shares be sold : What price should Norah Inc.'s shares be sold using the dividend discount model? If Norah Inc.'s cost of equity is 9.2% per year and its dividend payout ratio.
Why transformation effort fail : Reflect on the effectiveness of using this principle in the situation described. What aspects of the situation turned-out well? If you could have a "mulligan" (
What is meant by the right to health : What is meant by "the right to health"? What are the key features of the Universal Declaration of Human Rights concerning health?
Explain the importance of carrying out a coaching process : TopTravel SL is a company dedicated to high quality online hotel reservations.
How bank can hedge an interest rate risk by restructuring : How the bank can hedge an interest rate risk by restructuring its balance sheet? A bank has mortgage loans with a current market value of 325 million euros.
Describe common coagulation pathway : Describe the common coagulation pathway. Based on Jessie's test, which factor deficiency do you believe he has and why?
What internet business model would be appropriate : What Internet business model would be appropriate? What functions should the e-commerce presence perform?
Discuss the different performance appraisal methods : "Discuss the different performance appraisal methods. Which do you prefer and why?"
About the cardiovascular system when billing and coding : Why is it important for health care managers to know about the cardiovascular system when billing and coding?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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