Question
Assets Liabilities and Equity Rate Sensitive $300 (12%) Rate Sensitive $400 (6%) Non-Rate Sensitive 500 (11%) Non-Rate Sensitive 400 (5%) Non-Earning 100 Equity 100 Total
Assets Liabilities and Equity
Rate Sensitive $300 (12%) Rate Sensitive $400 (6%)
Non-Rate Sensitive 500 (11%) Non-Rate Sensitive 400 (5%)
Non-Earning 100 Equity 100
Total Assets $900 Total Lia. & Eq. $900
Calculate Net Interest Income and Net Interest Margin? How much will net interest income change if interest rates fall by 2 percentage points? What changes in portfolio composition in terms of ISA and ISL would you recommend to management if you expected interest rates to increase? Explain
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
4th Edition
0077262379, 978-0077262372
