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Quantitative Section 1) Put the following information into a bank balance sheet Deposits = $280 million Loans $40 million Borrowings from the Fed = $220

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Quantitative Section 1) Put the following information into a bank balance sheet Deposits = $280 million Loans $40 million Borrowings from the Fed = $220 million Securities $30 million Reserves $450 milion Excess Reserves $380 milion How much must this bank be worth? ( 40 + 30 ) 1 450) -(2622) /20 million 500 2 nce sheet might adjust if depositors withdrew 5100 milion in reserves. price for a S-year $1000 coupon bond being sold after 2 years Calculate the bondpricefora5-eared. Thecoupons area equals 6% annually 3) (two coupons have been paid When you sell the bond, the yield to maturity equals 6% annually. coupons have been paid/received). The coupons are annual and the coupon payments equa $10.00, when you sell the bond, the yield to maturity equals 10% annually. 4) Calculate the band price for a 5-year $1000 coupon bond after 4 years (four P- coupons have been paid/received). The coupons are annual and the coupon payments equal $80.00. When you sell the bond, the yield to maturity equals 4% annually. 5) Calculate the current yield for a 5-year $1000 coupon bond being sold after 3 years (three

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