Question: Please i need answer very soon and quickly response i need answer urgent please Rock Bank has the following (simplified) balance sheet. Amounts are in
Please i need answer very soon and quickly response i need answer urgent please
Rock Bank has the following (simplified) balance sheet. Amounts are in millions of dollars, and the % is the interest rate received (paid) on assets (liabilities). a. What is the current (total) repricing GAP position? ( 2 marks) b. What happens to the bank's net interest income if rates would rise by 1.5 percentage points? Show your calculation. (3 marks) c. The Chief Economist of Rock Bank sees conflicting signals as to the future direction of interest rates. Mountain Bank would like to close the GAP to 0 (zero) and aims to use an interest rate swap. Outline a swap strategy
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