Perform standard gap analysis and duration analysis

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Reference no: EM131889826

Given the following information

Rate sensitive assets = $16.14m Non rate sensitive assets = $50.66m

Rate sensitive liabilities = $24.75m Non rate sensitive liabilities = $32.96m

Equity Capital = $9.09m

A. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 1.45% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.2 years.

B. Determine the new level of equity capital.

Reference no: EM131889826

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