Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started