Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fixed rate CD's- Treasury bills- Savings Deposits- Discount loans- Treasurv notes- Variable rate CD's- Demand deposits- $16 $11.5 $4 $2.5 $8 $11 $8 Variable rate

image text in transcribed

Fixed rate CD's- Treasury bills- Savings Deposits- Discount loans- Treasurv notes- Variable rate CD's- Demand deposits- $16 $11.5 $4 $2.5 $8 $11 $8 Variable rate mortgage loans Fed Funds borrowing- Fixed rate loans Reserves - Equity Capital- Fed Funds lending- Money Market deposit accts. - $18 $2 $18 $4.5 $11 S3.5 $9 A. Develop a balance sheet from the above data into assets and liabilities with a correct division of rate sensitive and non-rate sensitive as illustrated in class B. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 2.25% decrease in interest rates and an average duration of assets of 8.4 years and an average duration of liabilities of 4.5 years C. Indicate the new level of equity capital

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 Accounting questions