Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculate the repricing gap and impact on net interest income of a 1 percent increase in interest rates for the following positions: a. Rate-sensitive assets

image text in transcribed

Calculate the repricing gap and impact on net interest income of a 1 percent increase in interest rates for the following positions: a. Rate-sensitive assets = $126 million; Rate-sensitive liabilities = $63 million. b. Rate-sensitive assets = $63 million; Rate-sensitive liabilities = $176 million. c. Rate-sensitive assets = $91 million; Rate-sensitive liabilities = $83 million. (For all requirements, negative amounts should be indicated by a minus sign. Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16)) Answer is complete but not entirely correct. Repricing gap a. 63.00 million $ Net interest income 0.63 million 1.13 X million 0.08 million b. $ 113.00 x million $ C. $ 8.00 million $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

10th Edition

1285531507, 9781285531502

More Books

Students also viewed these Finance questions

Question

=+b) What might you consider doing next?

Answered: 1 week ago

Question

What is job rotation ?

Answered: 1 week ago