Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A bank has calculated its duration gap as 3 . 1 4 years and its weighted average return of assets as 5 . 0 6

A bank has calculated its duration gap as 3.14 years and its weighted average return of assets as 5.06%. The bank has a total of $882 thousand market value in assets. If interest rates decrease by 0.93% for all assets and liabilities, according to EVE sensitivity analysis what is the approximate expected change in the economic value of equity? Round your final answer to two decimal places (Ex. $0.00).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions