Question
Consider the following income statement for WatchoverU Savings Inc. (in millions): Assets Liabilities Floating-rate mortgages (currently 14% annually) $ 56 NOW accounts (currently 10% annually)
Consider the following income statement for WatchoverU Savings Inc. (in millions):
| Assets | Liabilities | ||||
| Floating-rate mortgages (currently 14% annually) | $ | 56 | NOW accounts (currently 10% annually) | $ | 76 |
| 30-year fixed-rate loans (currently 11% annually) | 56 | Time deposits (currently 10% annually) | 24 | ||
| Equity | 12 | ||||
| Total | $ | 112 | $ | 112 | |
| 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 3 percent? |
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
1st Edition
1284026124, 9781284026122
