First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.7 years, $52 million in...
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First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.7 years, $52 million in assets, 7 percent equity to assets ratio, and market rates are 8 percent. What is the impact on the dealer's market value of equity if the change in all interest rates is an increase of 0.5 percent? [i.e., AR = 0.5 percent] Enter your answer in the box below. Round your answer to 3 decimal places. No need to include the $- sign in your answer. A bond has a two-year maturity, face value is $1,465 and it pays an annual coupon of 10 percent. What is the price of this bond if the current yield to maturity is 8 percent? Enter your answer in the box below. Round your answer to the nearest 4 decimal places. First Duration, a securities dealer, has a leverage-adjusted duration gap of 1.7 years, $52 million in assets, 7 percent equity to assets ratio, and market rates are 8 percent. What is the impact on the dealer's market value of equity if the change in all interest rates is an increase of 0.5 percent? [i.e., AR = 0.5 percent] Enter your answer in the box below. Round your answer to 3 decimal places. No need to include the $- sign in your answer. A bond has a two-year maturity, face value is $1,465 and it pays an annual coupon of 10 percent. What is the price of this bond if the current yield to maturity is 8 percent? Enter your answer in the box below. Round your answer to the nearest 4 decimal places.
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Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
Posted Date:
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