Question: Please Help with this Question. Calculate x. Assets Vj Dj Liabilities Vj Dj Cash 5 0.0 Deposits 40 3.2 Loans 40 1.5 CDs 20 0.8
Assets Vj Dj Liabilities Vj Dj Cash 5 0.0 Deposits 40 3.2 Loans 40 1.5 CDs 20 0.8 Mortgages 40 6.0 Debt 30 1.7 Securities 15 3.8 Equity capital 10 Total 100 Total 100 tk 1 2 50 99 100 CF(tk) x X X X 1000 + x Macaulay duration is equal to 10. The zero-coupon interest rates follow: Rate1 = 0.5%, Rate2 = 1%, Rate50 = 4%, and Rate99 and Rate100 = 5%. Assets Vj Dj Liabilities Vj Dj Cash 5 0.0 Deposits 40 3.2 Loans 40 1.5 CDs 20 0.8 Mortgages 40 6.0 Debt 30 1.7 Securities 15 3.8 Equity capital 10 Total 100 Total 100 tk 1 2 50 99 100 CF(tk) x X X X 1000 + x Macaulay duration is equal to 10. The zero-coupon interest rates follow: Rate1 = 0.5%, Rate2 = 1%, Rate50 = 4%, and Rate99 and Rate100 = 5%
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