Bank of Greensil has liabilities of $5.1 million with an average maturity of two years paying...
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Bank of Greensil has liabilities of $5.1 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $6.4 million with an average maturity of 5 years earning interest rates of 6.8 percent annually. What is the bank's net interest income in dollars in year 3, after it refinances all of its liabilities at a rate of 4.8 percent? A bond is scheduled to mature in five years. Its coupon rate is 9 percent with interest paid annually. This $1,000 par value bond carries a yield to maturity of 10 percent. It has a modified duration of 3.839 years. Calculate the percentage change in this bond's price if interest rates on comparable risk securities increase to 12 percent. Bank of Greensil has liabilities of $5.1 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $6.4 million with an average maturity of 5 years earning interest rates of 6.8 percent annually. What is the bank's net interest income in dollars in year 3, after it refinances all of its liabilities at a rate of 4.8 percent? A bond is scheduled to mature in five years. Its coupon rate is 9 percent with interest paid annually. This $1,000 par value bond carries a yield to maturity of 10 percent. It has a modified duration of 3.839 years. Calculate the percentage change in this bond's price if interest rates on comparable risk securities increase to 12 percent.
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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
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