correctly, showing all work, within 90 minutes from this post and I will tip very well. Thank you - 1. Explain why thrifts in New England and other places have been hurt by the recent wave of mortgage refinancings and the lack of customers who want adjustable rate mortgages. Assuming that the refinancings were unanticipated how did they affect the bank's repricing and duration gaps? Are they now more or less sensitive to interest rate changes? Explain. 2. A thrift has a negative annual CGAP of $35 million. A credit union has an annual CGAP of +$8 million. The thrift has total assets of $500 million and the credit union has total assets of $40 million. Assuming a zero spread effect, if all interest rates decrease 35 basis points, what is the change in NII for the thrift? For the credit union? 3. An American firm is earning British pounds from its foreign subsidiary. A British firm is earning dollars from its USA subsidiary. Neither firm can borrow at a cost effective rate outside of its home country/currency. What kind of swap could be used to limit the ForEx risk of both firms and explain the payment flows involved? Give details. 4. A $50,000 one year loan with a 1% origination fee and a 7% interest rate is funded with money on which the bank owes 3%. What is the expected pretax dollar spread on the loan? If the bank needs to net at least 3.5% on the funds lent, how many dollars can the bank spend on credit investigation, loan servicing, etc.? Would the bank be able to spend more if the loan amount was greater? What does this example suggest about credit analysis? 5. The effect of an interest rate change on the market value of a Financial Institution's equity is a function of three things. What are they and how do the affect the equity value change