Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show excel formula Consider the following bank balance sheet and associated average interest rates. The time frame for rate sensitivity is one year. Figures
Please show excel formula
Consider the following bank balance sheet and associated average interest rates. The time frame for rate sensitivity is one year. Figures are in thousands. Amount $200,000 Amount $300,000 Rate 1.1% Assets Rate Sensitive Fixed Rate Nonearning Rate L&E 2.5% Rate Sensitive 4.0% Fixed Rate Nonpaying & E Total 450,000 45,000 3.1% 375,000 20,000 Total $695,000 $695,000 a. C. Calculate the bank's GAP and NIM. b. What is the change in Nil if the entire yield curve shifts 1% higher? This bank is positioned to profit if interest rates move in which direction? d. Is your answer for part c true all the time? Explain your answer and give an example to support itStep 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