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An Fl finances a $250,000 2-year fixed-rate loan with a $250,000 1-year fixed-rate CD. Use the repricing model to determine (a) the FI's repricing
An Fl finances a $250,000 2-year fixed-rate loan with a $250,000 1-year fixed-rate CD. Use the repricing model to determine (a) the FI's repricing (or funding) gap using a 1-year maturity bucket, and (b) the impact of a 150- basis point decrease in interest rates on the FI's annual net interest income?
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Financial Institutions Management A Risk Management Approach
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
8th edition
978-0078034800, 78034809, 978-0071051590
