What happens to the market value of your bank equity

Assignment Help Finance Basics
Reference no: EM13295742

You are the interest rate risk officer for a bank. The bank has a $100 million in assets and an equity to assets ratio of 50%. Your team reports to you that the duration of the bank's asset portfolio is 5 years, and the duration of the bank's liabilities is 2 years. What happens to the market value of your bank's equity if interestrates increase 200 basis points? Please show work, will rate high.

Reference no: EM13295742

Questions Cloud

Explain weak or non-electrolyte : Characterize each of the following as a strong, weak, or non-electrolyte: a. H2O, b.HCl, c.HNO3, d.KCl, e.KNO3, f.KOH, g.CH3CO2H, h.CUSO4, i.NH3, j.Ca(NO3)2,k. Al(NO3)3
What is the duration of a bond porfolio : What is the duration of a bond porfolio that is equally weighted between three; one with duration 3 years, another with duration 12 years and the third with duration 18 years? Please show work, will rate high.
What is the value of acme''s interest tax shield : What is the value of Acme's interest tax shield?
Calculate the angular speed of the wheel : An automobile tire has a radius of 0.335 m, and its center moves forward with a linear speed of v = 16.1 m/s. Determine the angular speed of the wheel
What happens to the market value of your bank equity : What happens to the market value of your bank's equity if interestrates increase 200 basis points? Please show work, will rate high.
How much will the true amplitude of the oscillation in ph be : If the above electrode is used tomeasure the pH of arterial blood in vivo, and if the subject isbreathing at 0.5Hz, in the steady state how much will the true amplitude of the oscillation in pH be attenuated at the output of the pH electrode
Show what happens to long-term treasury yields : Using the tools of the supply and demand for bonds, show what happens to long-term Treasury yields in each of the following cases?
Find strength of gravitational field at surface of neptune : The planet Neptune orbits our Sun at an average distance of 4.50 * 10^9 km.It's mass is 1.02 8 10^26 kg. The Sun's mass is 1.99 * 10^30 kg. What is the strength of the gravitational field at the "surface"of Neptune
What is the yield on a taxable security : what is the yield on a taxable security that would provide the same after-tax yield as the municipal bond)? Please show work, will rate high.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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