User Account

All Pages

What is the maturity gap for county bank

Assignment Help Financial Accounting
Reference no: EM132740616

County Bank has the following market value balance sheet (in millions, all interest at annual rates). All securities are selling at par equal to book value. Assets Liabilities and Equity Cash $ 20 Demand deposits $100 15-year commercial loan at 10% interest, balloon payment 160 5-year CDs at 6% interest, balloon payment 210 30-year mortgages at 8% interest, balloon payment 300 20-year debentures at 7% interest, balloon payment 120 Equity 50 Total assets $480 Total liabilities and equity $480

Problem a. What is the maturity gap for County Bank?

Problem b. What will be the maturity gap if the interest rates on all assets and liabilities increase 1 percent?

Problem c. What will happen to the market value of the equity?

Reference no: EM132740616

Questions Cloud

How much can the firm gain : If Bradford adopts a policy of payment in 45 days or 60 days, how much can the firm gain if the annual opportunity cost of investment is 12 percent
What is the size of the final payment : If the first payment is due at the date of the agreement, what is the size of the final payment?
Which total amount should be shown in the flexible budget : A static budget, based upon production of 10,000 units, Which total amount should be shown in the flexible budget for direct labor and depreciation costs?
Approximate yield rate for mary investment : What was the approximate yield rate for Mary's investment? Please show all steps
What is the maturity gap for county bank : What will be the maturity gap if the interest rates on all assets and liabilities increase 1 percent? What is the maturity gap for County Bank?
Calculate lower-of-cost-or-net realizable value : Calculate lower-of-cost-or-net realizable value of Gianni's inventory at December 31, 2020, applying the rule to the inventory classifications
Compute what is operating cash flow each year : A company will sell Thingamajigs to consumers, The opportunity cost of capital is 6% and the tax rate is 33%. What is operating cash flow each year?
What is the bond price if priced with the assumption : Additional interest at the call ?(4 coupon? payments), what is the bond price if priced with the assumption that the call will be on the first available call? d
What is the purchase price to yield : Raymond wants to invest a 3.5% annuity bond of $500,000 with interest payable monthly is to be redeemable at par in seven years.

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