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A bank has the following balance sheet: Assets Liabilities and Equity APR $m APR $m Rate sensitive $520,000 Rate sensitive $345,000 Fixed rate 4.25% 755,000
| A bank has the following balance sheet: | |||||||||||||||||||||||||
| Assets | Liabilities and Equity | ||||||||||||||||||||||||
| APR | $m | APR | $m | ||||||||||||||||||||||
| Rate sensitive | $520,000 | Rate sensitive | $345,000 | ||||||||||||||||||||||
| Fixed rate | 4.25% | 755,000 | Fixed rate | 3.25% | 805,000 | ||||||||||||||||||||
| Non-earning | 265,000 | Equity | 390,000 | ||||||||||||||||||||||
| Total Assets | $1,540,000 | Total Liabilities and Equity | $1,540,000 | ||||||||||||||||||||||
| assume the rate sensitive assets earn an apr of 3.82%and rsl earn an apr of 2.95%
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Fundamentals Of Investments Valuation And Management
Authors: Bradford D Jordan, Thomas W. Miller Jr., Steven D. Dolvin
6th Edition
0073530719, 9780073530710
