Question: Question 1 6 pts Question 1: This is exercise is based on problem 3 from Principles of Bank Management. It has two parts - A

Question 1 6 pts Question 1: This is exercise is based on problem 3 from "Principles of Bank Management. It has two parts - A & B. Assets Potential Rate Change Amount Liabilities Potential Rate Change Amount Cash N/A $100 90-Day CDs 0.75% $100 6-month Govt. Bonds 2.00% $300 360-Day CDs 1.00% $200 2-year Commercial Loans 3.00% Time Deposits 2- $400 year 1.50% $900 5-year Fixed Rate Loans 2.00% $500 Stockholder Equity N/A $100 Total $1,300 Total $1,300 Part A. Using the Balance Sheet from above Calculate the 2 year GAP (include the appropriate accounts that have maturities within 2 years). Input your answer in the $XXX format. If the number is negative use the minus sign in front of the $ sign. -$2.19 Part B. What is the net impact on net interest income for the 2-year GAP, if interest rates are expected to change as specified in the potential rate change column? Input you answer in the $XXX format. If the number is negative use the minus sign in front of the $. -$2.19
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