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  book-img-for-question

Financial Markets And Institutions

ISBN: 9780078034664

5th Edition

Authors: Anthony Saunders, Marcia Cornett

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