The following is the balance sheet of Boston Bank. The average maturity of demand deposits is...
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The following is the balance sheet of Boston Bank. The average maturity of demand deposits is estimated at 2 years. 3-mo. T-Bills 2-yr Bonds 5-yr Bonds Face Value $95m $60m $80m Runoff <1 year Demand Dep. 5 percent Equity 10 percent Face Value $180m $20m Runoff <1 year 10 percent What is the repricing gap if a 0 to 3 month maturity gap is used? Ignore runoffs. Enter your answer in the box below. No need to include the $-sign. For example, if your answer is $123,000,000, simply enter 123,000,000 Question 16 Assets Cash Loans Treasuries Liabilities and Equity Time Deposits CDs Equity Amount $75 million $750 million $175 million $350 million $575 million $75 million Rate Duration 12 percent 1.75 years 9 percent 7.00 years 7 percent 5 years 8 percent 8 years 2.5 pts Calculate the duration of the liabilities to four decimal places. Enter your answer in the box below. The following is the balance sheet of Boston Bank. The average maturity of demand deposits is estimated at 2 years. 3-mo. T-Bills 2-yr Bonds 5-yr Bonds Face Value $95m $60m $80m Runoff <1 year Demand Dep. 5 percent Equity 10 percent Face Value $180m $20m Runoff <1 year 10 percent What is the repricing gap if a 0 to 3 month maturity gap is used? Ignore runoffs. Enter your answer in the box below. No need to include the $-sign. For example, if your answer is $123,000,000, simply enter 123,000,000 Question 16 Assets Cash Loans Treasuries Liabilities and Equity Time Deposits CDs Equity Amount $75 million $750 million $175 million $350 million $575 million $75 million Rate Duration 12 percent 1.75 years 9 percent 7.00 years 7 percent 5 years 8 percent 8 years 2.5 pts Calculate the duration of the liabilities to four decimal places. Enter your answer in the box below.
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The duration of the liabilities can be calculated by summing t... View the full answer
Related Book For
Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
Posted Date:
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