Question: Please solve it completely I sent it before, but the tutor did not solve it, he just attached a half picture and without any information

Please solve it completely
I sent it before, but the tutor did not solve it, he just attached a half picture and without any information or solution  Please solve it completely I sent it before, but the tutor

Assignment 1 1- A bank has two, 3-year commercial loans with a present value of $70 million. The first is a $30 million loan that requires a single payment of $37.8 million in 3 years, with no other payments until then. The second is for $20 million. It requires an annual interest payment of $1.6 million. The principal of $20 million is due in 3 years. a. Using excel calculate the duration the duration of the bank's commercial loan portfolio interest rates is 9%? b. What will happen to the value of its portfolio if the general level of interest rates increased from 9% to 9.5%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!