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I need help with questions A , C , D , and F . Please show steps. Integrated Mini Case: Chapters 8 and 9 CALCULATING
I need help with questions A C D and F Please show steps.
Integrated Mini Case: Chapters and
CALCULATING AND USING REPRICING AND DURATION GAP
State Bank's balance sheet is listed below. Market yields and durations in years are in parenthesis, and
amounts are in millions.
Chaptar interest Rate
a What is State Bank's repricing gap if the plan
ning period is six months? One year?
c What is the impact over the next six months
on net interest income if interest rates on RSAs
increase basis points and on RSLs increase
basis points Explain the results.
d What is the impact over the next year on
net interest income if interest rates on RSAs
decrease increase basis points and on RSLs
decrease increase basis pointsi Explain the
results.
f What is the change in equity value fore
casted from the duration values for decrease of
percent in interest rates on assets and
percent on liabilities?
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