How much would the value of the bank change

Assignment Help Financial Accounting
Reference no: EM132999044

Question 1: Bank has $30B in assets and $25B in liabilities, duration gap is .0505. How much would the value of the bank change if interest rates rise from 4.5% to 5%?

Question 2: New duration gap would be .124062 so what would the value of assets and value of liabilities be?

Reference no: EM132999044

Questions Cloud

What do think about approach for abc company : Company has found in the past 10 years that small illegal or unethical acts lead to larger illegal or unethical behavior. What do you think about this approach?
Which dividend reinvestment plans can be found in : Which Dividend Reinvestment Plans (DRIPS) can be found in? transfer-agent-run programs./ company-run programs./ brokerage-run programs.
What is the npv of a investment opportunity : Thomas Green is using net present value when evaluating investment opportunities. What is the NPV of a investment opportunity if the initial cost is $2,122,879?
Find what the balance in supplies on september first was : What the balance in Supplies on September 1st was? During September purchases of supplies were $29,100 and the cost of supplies used was $28,500.
How much would the value of the bank change : Bank has $30B in assets and $25B in liabilities, duration gap is .0505. How much would the value of the bank change if interest rates rise from 4.5% to 5%?
How does paying liability in cash affect accounting equation : How does paying a liability in cash affect the accounting equation? liabilities decrease; owner's equity increases./ assets increase; liabilities decrease
Which of the items below is not a business entity : Which of the following is not an asset? Four financial statements are usually prepared for a business. In what order are these three statements prepared?
Determine the amount of expansion : The Central Bank of Liberia issued an official gazette in which, among other things, it revised the reserve requirement ratio from 10 percent to 20 percent, and
Which owner equity should equal : The assets and liabilities of a company are $128,000 and $84,000, respectively. Which Owner's equity should equal? Which is a service business?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Which contingent liabilities are

Which Contingent liabilities are? not recognised in the notes to the financial statements because the possibility of an outflow in settlement is remote.

  What amount would she receive in disability benefits

What amount would she receive in disability benefits if an illness kept Georgia from work for 22 weeks? Georgia, a widow, has a take-home pay of $1,200 a week.

  Make a statement of retained earnings for the year

Prepare a statement of retained earnings for the year ended December 31, 2016. A material error in net income from a previous period was corrected.

  Lower tax rates and overall tax preference

Explain why and how many companies in the United States are moving their operations oversea's for lower tax rates and overall tax preference. Be sure to clearly explain and outline the requirements associated with a company's decision to make a forei..

  Calculate the required return

Calculate the required return and the present value for both shares would you place on each share Furthermore

  How will operating income be affected If Mickey decides

Mickey Tire Company makes a special kind of racing tire. Variable costs are $260 per unit, If Mickey decides to upgrade, how will operating income be affected?

  What is the future value of periodic payments

What is the future value of 15 periodic payments of $9,000 each made at the end of each period and compounded at 10%?

  Find what amount of money in five years is equivalent

Find what amount of money in 5 years is equivalent to Larry's money if interest is earned at j4 = 4.5% for the first 4 years and j4 = 4% afterwards?

  What is now downtown sampiruhan

What is now downtown Sampiruhan. If this land grew in value at compounded annual interest rate of 8 percent, what is it worth today?

  Calculate the initial outlay of the project

Calculate the initial outlay of the project. Maju Construction (MCo) Sdn. Bhd. is bidding on a contract to build four tiny camping house (TCH)

  The average cost

ABC Inc. uses a cost structure that includes some specific cost categories that behave as fixed costs, some variable costs, and some mixed costs. As ABC's activity units produced and sold level increases the average cost on a per unit basis for each ..

  Prepare a statement of partnership liquidation for period

After closing the accounts on July 1, prior to liquidating the partnership, Prepare a statement of partnership liquidation for the period July 1-29.

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