Question: need answer urgently Securities are all less than one year. Chequable Deposits include S10million under one year (Interest bearing) and $15 million 1 to 2

need answer urgently need answer urgently Securities are all less than one year. Chequable Deposits

Securities are all less than one year. Chequable Deposits include S10million under one year (Interest bearing) and $15 million 1 to 2 years (Non Interest bearing) Make changes to the balance sheet then. NB), Rate Sensitive Assets and Liabilities are one year or less. The current Interest Rate is 10% per ammum. 1)Using Gap Analysis What is the income gap between Rate Sensitive Assets and Liabilities if interest rates increase by 1.50% per annum overnight how much will profits either decrease or increase ovemight? (7) Marks). 2) Using Duration Gap Analysis Given Dur Gap =Dura-(L/A*DurI) calculate change to Net worth of the bank increase/decrease (8 Marks)

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