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The following information details the current rate sensitivity report for Global Bank, Inc. (S million). Maturity Bucket Overnight 1-30 days 31-91 days 92-181 days Assets
The following information details the current rate sensitivity report for Global Bank, Inc. (S million). Maturity Bucket Overnight 1-30 days 31-91 days 92-181 days Assets Fed Funds $20 Loans $10 $15 $80 Liabilities Fed Funds $50 Euro CDs $5 $25 $0 $40 a. Calculate the funding gap for Global Bank using (a) a 30-day maturity period and (b) a 91-day maturity period. b. How will a decrease of 25 basis points in all interest rates affect Global Bank net interest income over a planning period of 91 days? c. What does Global Bank's 91-day gap positions reveal about the bank management's interest rate forecasts and the bank's interest rate risk exposure? Briefly discuss
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