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Kindly help me with my assignment, the questions are in the attached document. Attempt All the Questions: 1. Prepare a Statement of Financial Position of
Kindly help me with my assignment, the questions are in the attached document.
Attempt All the Questions: 1. Prepare a Statement of Financial Position of Jeddah Financial Corporation from the following details: Cash Federal Funds Sold and other investments Advanced from Federal Home Loans Securities Available for sale, at fair value Securities sold under agreements to repurchase Senior Debts Loans held for sale Mortgage backed securities with recourse held to maturity, at cost Interest earned but uncollected Premises and Equipment, net Other Assets Loans Held for Investment Common Stock Additional Paid in Capital Retained Earnings 518,161 1,321,626 38,961,165 382,499 5,000,000 8,194,266 83,365 1,168,480 392,303 403,084 ? 117,798,600 30,804 338,997 81,408,185 2. Dammam West Bank has an obligation to pay a fixed nominal amount of $ 150, 8 years from today. Assume that the appropriate annual interest rate for this instrument, denoted r, is currently 10%. Answer the following questions: a) What is the current value of obligation b) What will the value of obligating if the rate of interest is increased by 4% c) What will be value of obligation if the rate of interest is decreased by 2% 3. For a bank to accept credit risk, it must expect to be paid either interest at a sufficiently large premium above the risk-free rate or an actuarially fair fee. Considering this fact, how will you determine credit risk premiumStep by Step Solution
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