The total face value of Reliance Bank's portfolio of eight-year zero coupon bonds is $39 million....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The total face value of Reliance Bank's portfolio of eight-year zero coupon bonds is $39 million. The current market yield on the bonds is 9.7 percent and the maximum potential adverse move in yields is estimated at 30 basis points. What is the DEAR of the bank's bond portfolio? (Please round your answer to two decimal places in terms of millions of dollars. Please do not show a $ sign or a minus sign in the answer (e.g. if the answer is -$2.13 million, enter 2.13)) Answer: The total face value of Reliance Bank's portfolio of eight-year zero coupon bonds is $39 million. The current market yield on the bonds is 9.7 percent and the maximum potential adverse move in yields is estimated at 30 basis points. What is the DEAR of the bank's bond portfolio? (Please round your answer to two decimal places in terms of millions of dollars. Please do not show a $ sign or a minus sign in the answer (e.g. if the answer is -$2.13 million, enter 2.13)) Answer:
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
Students also viewed these general management questions
-
Toro Co. has equipment with a carrying amount of $700,000. The expected future net cash flows from the equipment are $705,000, and its fair value is $590,000. The equipment is expected to be used in...
-
Kuga Co. has equipment with a carrying amount of $700,000. The expected future net cash flows from the equipment is $705,000, and its fair value is $590,000. The equipment is expected to be used in...
-
Kuga Co. has equipment with a carrying amount of $700,000. The expected future net cash flows from the equipment is $705,000, and its fair value is $590,000. The equipment is expected to be used in...
-
Presented here are summarized data from the balance sheets and income statements of Wiper Inc.: WIPER INC. Condensed Balance Sheets December 31, 2020, 2019, 2018 (in millions) 2020 2019 Current...
-
1. What type of inspection would be helpful in monitoring and ensuring software quality? 2. What type of inspection plan would you recommend?
-
What type of information is provided by each type of statement?
-
The transactions for Dancing Antz, Inc., for the month of September 2010 have been posted to the accounts as follows: Requirements 1. Prepare the journal entries that served as the sources for the...
-
Compare the Acceleration and Containment strategies for supporting user computing, and provide a rationale for why a firm might choose one or the other.
-
A concentric tube heat exchanger having an area of 100 m2 is used to heat 5 kg/s of water that enters the heat exchanger at 50oC. The heating fluid is oil having a specific heat of 2.1 kJ/kg and a...
-
Computer Service and Repair was started five years ago by two college roommates. The company's comparative balance sheets and income statement are presented below, along with additional information....
-
Based on your learning from the simulation exercise, what can you see as some major reasons why employees may not take training and developmental opportunities at work? In relation to the four types...
-
A bat at rest sends out ultrasonic sound waves at 53.0 kHz and receives them returned from an object moving directly away from it at 33.5 m/s. Part A What is the received sound frequency?
-
The following cost data pertain to the operations of Montgomery Department Stores, Incorporated, for the month of July. Corporate legal office salaries $ 6 2 , 2 0 0 Apparel Department cost of sales...
-
Which of the following statements are true about supervised learning? Supervised learning is called 'supervised', because it works by leveraging certain domain-based rules provided by the experts...
-
Pina Colada Corp. has the following transactions during August of the current year. Aug. 1 Opens an office as a financial advisor, investing $4,000 in cash in exchange for common stock. 4 Pays...
-
A 10kg Ice Skater is moving at 6 m/s and is headed towards a stationery 4kg snowman. After the two collide, the ice skater has 0 m/s of velocity and the snowman moves forward. What is the velocity of...
-
You are the manager for a popular restaurant. You have been collecting customer complaints and have decided it is time to take action. Create a Pareto chart to determine which problems are meeting...
-
An item of depreciable machinery was acquired on 1 July 2009 for $120,000 by cash It is expected to have a useful life of 10 years and zero salvage value On 1 July 2012, it was decided to revalue the...
-
Comprehensive Depreciation Computations Kohl beck Corporation, a manufacturer of steel products, began operations on October 1, 2009. The accounting department of Kohl beck has started the...
-
Assume that Toni Braxton Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2010, one of Toni Braxtons creditors, the National American Bank,...
-
(Off-Balance-Sheet Financing) Matt Ryan Corporation is interested in building its own soda can manufacturing plant adjacent to its existing plant in Partyville, Kansas. The objective would be to...
-
If the least-squares regression line has slope b1 = 5, and two x-values differ by 3, the predicted difference in the y-values is _____________________. In Exercises 57, fill in each blank with the...
-
For each of the following plots, interpret the y-intercept of the least-squares regression line if possible. If not possible, explain why not. a. The least-squares regression line is = 1.98 +...
-
Substituting the value of the explanatory variable for x in the equation of the least-squares regression line results in a prediction for y. In Exercises 812, determine whether the statement is true...
Study smarter with the SolutionInn App