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I have the MCQ answer but can you please provide workings / explained answer if possible? Consider the following repricing buckets: Repricing bucket 1 day
I have the MCQ answer but can you please provide workings / explained answer if possible?
Consider the following repricing buckets: Repricing bucket 1 day 1 day to 3 months 3 to 6 months 6 to 12 months 1 to 5 years Over 5 years Assets $150,000 $200,000 $200,000 $500,000 $150,000 $50,000 Liabilities $240,000 $140,000 $200,000 $160,000 $260,000 $200,000 What is the annualised change in the bank's future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 0.5%? a. $155 b. -$155 c. $1550. d. -$1550 e. None of the given answers. Consider the following repricing buckets: Repricing bucket 1 day 1 day to 3 months 3 to 6 months 6 to 12 months 1 to 5 years Over 5 years Assets $150,000 $200,000 $200,000 $500,000 $150,000 $50,000 Liabilities $240,000 $140,000 $200,000 $160,000 $260,000 $200,000 What is the annualised change in the bank's future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 0.5%? a. $155 b. -$155 c. $1550. d. -$1550 e. None of the given answers
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