QUESTION 9

1. Bank Asset Bond A				Bank Liability L
   Settlement	6/27/2019			Settlement	6/27/2019
   Maturity	6/27/2029			Maturity	6/27/2022
   Rate	10%			Rate	8%
   Yield	8%			Yield	7%
   Redemption	100			Redemption	100
   frequency	2			frequency	2
   basis	0			basis	0
   price of bond				price of bond

   The price of the bank asset is between 105 and 107
   The price of the bank liability is 100

   It is true or false ?

   QUESTION 27 - One reasonable way for a significantly undercapitalized bank to raise capital is sell unproductive risky assets and use the proceeds to pay down debt. Regulators look at how much equity capital a bank has relative to risky assets. It is True or False ?

Answer rating: 100% (QA)

ANSWER QUESTION 9 True The price of the bank asset is between 105 and 107 a... View the full answer