Bank x plans to use two investments it has to obtain discount window loan: it has 100 million 6 month T-bills and 100 million BBB rated - 2 year bond (hint: you need to figure out what the duartion for each of the assets to use correct %), the max amount it can borrow from central bank is ______ million

 

Transcribed Image Text:

Treasury Bills, Notes, Bonds, Floating Rate Notes, AAA-A rated- Bonds BBB rated - Bonds duration 0-1 99% 98% 91% duration>1-3 duration >3-5 99% 98% Numeric Response 98% 90% 97% 87% Bank x plans to use two investments it has to obtain discount window loan: it has 100 million 6 month T-bills and 100 million BBB rated - 2 year bond (hint: you need to figure out what the duartion for each of the assets to use correct %), the max amount it can borrow from central bank is million Treasury Bills, Notes, Bonds, Floating Rate Notes, AAA-A rated- Bonds BBB rated - Bonds duration 0-1 99% 98% 91% duration>1-3 duration >3-5 99% 98% Numeric Response 98% 90% 97% 87% Bank x plans to use two investments it has to obtain discount window loan: it has 100 million 6 month T-bills and 100 million BBB rated - 2 year bond (hint: you need to figure out what the duartion for each of the assets to use correct %), the max amount it can borrow from central bank is million

Answer rating: 100% (QA)

Answer 189 Million Preparing the Investment and Borrowing with the help of given data SNo Durati... View the full answer