County Bank has the following market value balance sheet (in millions, all interest at annual rates). All
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County Bank has the following market value balance sheet (in millions, all interest at annual rates). All securities are selling at par equal to book value.
a. What is the maturity gap for County Bank?
b. What will be the maturity gap if the interest rates on all assets and liabilities increase by 1 percent?
c. What will happen to the market value of the equity?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-1259717772
9th edition
Authors: Anthony Saunders, Marcia Millon Cornett
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