Question
The following information is from First Yaupon Savings Association. Assets Par Amount Rate 2-year commercial loans $600 million 10% 1-year Treasury bills $400 million Liabilities
The following information is from First Yaupon Savings Association. Assets Par Amount Rate 2-year commercial loans $600 million 10% 1-year Treasury bills $400 million Liabilities Par Amount Rate 1-year CDs $900 million 7% Net Worth $100 million If all interest rates decrease by 15 basis points, what is the expected impact on the Fi's net interest income within one year maturity bucket?
+$150,000
- $150,000
-$750,000
+$750,000
No change
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter, Wajeeh Elali, Amer Al Roubaix
Arab World Edition
1408271583, 978-1408271582
