Given the following information Rate sensitive assets = $16.14m Non rate sensitive assets = $50.66m Rate sensitive

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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 answer-question

Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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Posted Date: Nov 02, 2022 04:21 AM

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Given the following information Rate sensitive assets = $16.14m Non rate sensitive assets = $50.66m Rate sensitive

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Money Banking and Financial Markets

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