Question
Problem 20-2 (LG 20-1) Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions): Assets Liabilities Floating-rate mortgages (currently 13% annually) $ 64
Problem 20-2 (LG 20-1)
Consider the following balance sheet for WatchoverU Savings Incorporated ($ in millions):
| Assets | Liabilities | ||
|---|---|---|---|
| Floating-rate mortgages (currently 13% annually) | $ 64 | NOW accounts (currently 9% annually) | $ 84 |
| 30-year fixed-rate loans (currently 10% annually) | 64 | Time deposits (currently 9% annually) | 33 |
| Equity | 11 | ||
| Total | $ 128 | $ 128 |
a. What is WatchoverUs expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 4 percent? (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g., 32.16))
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A Handbook Of Mutual Fund Investing
Authors: Barry G Dolgin
1st Edition
1456489704, 978-1456489700
