Question $2$

Risk sensitive assets are those assets which will reprice during a specified time

period. We are told in the book that risk sensitive assets and liabilities are balance

sheet entries. Therefore if you issue a new car loan of $$64,294$ today with a term

of $7$ years, and an interest rate of $4\mathrm{.}35\%($with monthly payments$),$ how much of the

original $$64,294$ will be seen as risk sensitive assets in a "bucket" including the first

year of that loan? $($Please enter your answer in the space provided to the nearest

penny.$)$