Subjects Course Hero Course Hero Course Hero Management of Fina X pvifa formula - Goog X + Apps Related Documents coursehero.com/file/29632065/Management-of-Financial-Institutions-2016-Semester3A1-Examination-for-BX2133-TOWNSVILLE2FE/#/doc/qa Login - Blackboard... Student First uttalls, attachments antu requirements so tutors can provide a complete answer. 2048 Cite a Website in A... in Business Plan Assig... WIX Wix Website HARIBO Projekt 5/4 ayo. Question 4 Add to Library More Consider the following balance sheet of Gamma Bank. Minimum 10 characters are required. Search for a subject. Fixed rate mortgage loans Variable rate mortgage loans Get answer Answers in as fast as 15 minutes By continuing, you agree to our Privacy Policy, Terms of Use, and Honor Code. Type here to search P (30 marks) LO Assets Liabilities Amount in min Amount Duration 1,600 4.1 Duration in years Money Market short term deposits (variable rates) Amount Duration 2,000 1.3 1,400 8.1 Saving accounts deposits 3,500 2.3 Commercial loans (indexed on Libor) 5,000 3.2 Variable rate CDs 1,000 1.2 Buildings and equipment 2,000 Total 10,000 Equity Total 3,500 10,000 a) Using basic gap analysis, calculate the change in Gamma Bank's net interest income if interest rates are forecast to increase by 0.5%, from 3% to 3.5%. Make the following assumptions on the runoff of cash flows: o fixed-rate mortgages repaid during the year: 10% o proportion of savings deposits and variable-rate CD that are rate-sensitive: 20%. b) Calculate the duration gap for Gamma Bank and the impact (in Dollars) on the networth of the bank if rates move up from 3% to 3.5% c) Explain how Gamma Bank could decrease its duration gap. End of questions Copyright reserved o e (10+ 10+10-30 marks) G ... >>>> Other bookmarks A+ Ask Expert Tutors You can ask 28 questions (will expire ) ENG 11:38 PM 2/11/2020