Question
Assets Rate Liabilities Rate Floating Rate Floating Rate $7007%$6005% Fixed Rate Fixed Rate $35010%$4206% Non-earning Equity $150$180 What is Repricing Gap? Calculate Net Interest Income
AssetsRateLiabilitiesRate
Floating RateFloating Rate
$7007%$6005%
Fixed RateFixed Rate
$35010%$4206%
Non-earningEquity
$150$180
What is Repricing Gap?
Calculate Net Interest Income
Calculate Net Interest Margin
If rates go up by 50 basis points, was the bank hedged accurately i anticipation of the rate change?Why or why not?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
