Question
From text book; Financial Markets and Institutions, Saunders and Millon Cornett. Answers need to be in EXCEL. 2. Consider the following income statement for WatchoverU
From text book; Financial Markets and Institutions, Saunders and Millon Cornett. Answers need to be in EXCEL. 2. Consider the following income statement for WatchoverU Savings Inc. (in millions): (LG 19-1). ASSETS LIABILITIES Floating Rate Mortgages (currently 10% annually) $50 NOW accounts (currently 6% annually) $70 30 year fixed rate loans (currently 7% annually) $50 Time deposits (currently 6% annually) $20 Equity $10 TOTAL $100 $100 a. What is WatchoverUs expected net interest income at year-end? Current expected interest income: $5m + $3.5m = $8.5m. b. What will be the net interest income at year-end if interest rates rise by 2 percent?
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
