Question
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions): Assets Liabilities Floating-rate mortgages (currently 10% annually) $ 60 NOW accounts (currently 6%
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions):
| Assets | Liabilities | ||||||
| Floating-rate mortgages (currently 10% annually) | $ | 60 | NOW accounts (currently 6% annually) | $ | 80 | ||
| 30-year fixed-rate loans (currently 7% annually) | 60 | Time deposits (currently 6% annually) | 24 | ||||
| Equity | 16 | ||||||
| Total | $ | 120 | $ | 120 | |||
a. What is WatchoverUs expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 2 percent?
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Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Kristin L. Reiter, Paula H. Song
7th Edition
1640551867, 9781640551862
