Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

begin{tabular}{|c|c|c|c|c|c|c|c|} hline Assets & begin{tabular}{l} Market Value end{tabular} & Rate & begin{tabular}{l} Duration (Years) end{tabular} & begin{tabular}{l} Liabilities and Equity

image text in transcribed
image text in transcribed
\begin{tabular}{|c|c|c|c|c|c|c|c|} \hline Assets & \begin{tabular}{l} Market \\ Value \end{tabular} & Rate & \begin{tabular}{l} Duration \\ (Years) \end{tabular} & \begin{tabular}{l} Liabilities \\ and \\ Equity \\ Time \end{tabular} & \begin{tabular}{l} Market \\ Value \end{tabular} & Rate & \begin{tabular}{l} Duration \\ (Years) \end{tabular} \\ \hline Cash & $150 & & \multirow{3}{*}{2.8} & Deposits & $400 & 4% & 1.5 \\ \hline \multirow{2}{*}{\begin{tabular}{l} Loans \\ T. \\ Bonds \end{tabular}} & \multirow[t]{2}{*}{$560} & \multirow[t]{2}{*}{10%} & & CDs & $400 & 6% & 4 \\ \hline & & & & \begin{tabular}{l} Total \\ Liabilities \end{tabular} & $800 & & \\ \hline \multirow[t]{3}{*}{ Total } & \multirow[t]{3}{*}{$950} & & & & & & \\ \hline & & & & Equity & $150 & & \\ \hline & & & & & $950 & & \\ \hline \end{tabular} the following bank Information for questions 7-10. What is the weighted avernge duration of assets? 256 years 3.17 years 4.85 years 5.00 years 750 years What is the weighted aveneze duntion of liabllities? 1.25 years 203 years 2.12 years 300 years 2.75 years What is the bank's duration gap? 0.532120.910.854.58 - If interest rates rice is for all ascets and liabilities and maket interest rate is 8%, what is the approximate expected change in the economile value of equity? 57 A8 - $748 - $5.84 56.78 $0.76

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