Given the following information Rate sensitive assets = $16.14m Non rate sensitive assets = $50.66m Rate sensitive
Fantastic news! We've Found the answer you've been seeking!
Question:
Given the following information
Rate sensitive assets = $16.14m Non rate sensitive assets = $50.66m
Rate sensitive liabilities = $24.75m Non rate sensitive liabilities = $32.96m
Equity Capital = $9.09m
A. Perform a Standard Gap Analysis and a Duration Analysis using the above data if you have a 1.45% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.2 years.
B. Determine the new level of equity capital.
Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Posted Date: