AutoSave OFF A ABC C.. GAPhomework.Spring 2022 (2) - Compatibility Mode - Saved to my Mac Mailings Review View Tell me Home Insert Draw Design Layout References Le Share Comments X LC Times New... 12 v VA Aav A 2 1 Aalhelde Aalbedby AaBCCD AaBbCcDc AaBbCcD Normal No Spacing Heading 1 Heading 2 Title Anoben E Paste B IV ab X U x x A Av Editor V 11 Styles Pane Answer the questions in the space provided. Retum as a Word attachment to an email. 1. DDR National Bank uses dollar GAP management. The following is the bank's balance sheet: Rate Sensitive Assels (7.5%) 30,000 Fbed Rate Assets (0.0%) 30,000 60,000 Rate Sensitive Liabilities (6.0%) Fored Rate Liabilities (7.0%) 29,000 31,000 60,000 a. What is the bank's dollar GAP and its GAP Ratio? b. Calculate the bank's pretax profits. b. c. Recalculate pretax profits assuming a drop in interest rates of 0.5% (50 basis points) d. Now assume DDR anticipates the fall in interest rates and replaces $4.000 of RSA with an equal amount of FRA (Use the yields as determined in part C.) Recalculate the dollar GAP and the pretax profits. Page 1 of 2 230 words (English (United States) IKS FOCUS E 100% AutoSave OFF A ABC C.. GAPhomework.Spring 2022 (2) - Compatibility Mode - Saved to my Mac Mailings Review View Tell me Home Insert Draw Design Layout References Le Share Comments X LC Times New... 12 v VA Aav A 2 1 Aalhelde Aalbedby AaBCCD AaBbCcDc AaBbCcD Normal No Spacing Heading 1 Heading 2 Title Anoben E Paste B IV ab X U x x A Av Editor V 11 Styles Pane Answer the questions in the space provided. Retum as a Word attachment to an email. 1. DDR National Bank uses dollar GAP management. The following is the bank's balance sheet: Rate Sensitive Assels (7.5%) 30,000 Fbed Rate Assets (0.0%) 30,000 60,000 Rate Sensitive Liabilities (6.0%) Fored Rate Liabilities (7.0%) 29,000 31,000 60,000 a. What is the bank's dollar GAP and its GAP Ratio? b. Calculate the bank's pretax profits. b. c. Recalculate pretax profits assuming a drop in interest rates of 0.5% (50 basis points) d. Now assume DDR anticipates the fall in interest rates and replaces $4.000 of RSA with an equal amount of FRA (Use the yields as determined in part C.) Recalculate the dollar GAP and the pretax profits. Page 1 of 2 230 words (English (United States) IKS FOCUS E 100%