Question: What is a maturity bucket in the repricing model Why
What is a maturity bucket in the repricing model? Why is the length of time selected for repricing assets and liabilities important when using the repricing model?
Answer to relevant QuestionsWhat is the CGAP effect? According to the CGAP effect, what is the relation between changes in interest rates and changes in net interest income when CGAP is positive? When CGAP is negative?How is duration related to the interest elasticity of a fixed-income security? What is the relationship between duration and the price of the fixed-income security?What are some of the arguments for and against the use of market value versus book value of capital?Use the following information about a hypothetical government security dealer named J.P. Groman. (Market yields are in parentheses; amounts are in millions.)a. What is the repricing or funding gap if the planning period is ...Suppose that you purchase a Treasury bond futures contract at $ 95 per $ 100 of face value. a. What is your obligation when you purchase this futures contract? b. If an FI purchases this contract, in what kind of hedge is it ...
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