Calculate the repricing gap and impact on net interest income of a 1 percent increase in interest
Question:
Calculate the repricing gap and impact on net interest income of a 1 percent increase in interest rates for the fol- lowing positions: (LG 22-1)
a. Rate-sensitive assets = $100 million; Rate-sensitive liabilities $50 million.
b. Rate-sensitive assets $50 million; Rate-sensitive liabilities $150 million.
c. Rate-sensitive assets = $75 million; Rate-sensitive liabilities $70 million.
d. What conclusions can you draw about the repricing gap model from the above results?
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Related Book For
Financial Markets And Institutions
ISBN: 9780078034664
5th Edition
Authors: Anthony Saunders, Marcia Cornett
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