Use the following information on Chopra Bank to answer Questions 1 and 2. Assume that the...

Transcribed Image Text:

Use the following information on Chopra Bank to answer Questions 1 and 2. Assume that the interest rate change would be equal to both Assets and Liabilities. Assets $m Liabilities & equity Vault Cash 50 Overnight interbank borrowing (1.00%) 150 T-notes: 1 month (2.05%) 100 1-yr Deposits (1.50%) 400 T-bonds: 3 year (3.50%) 400 2-year fixed-rate subordinated debt (2.55%) 190 Loans: 10 year (6.75%) 200 Equity 10 Total assets 750 Total liabilities and equity 335 5.1) What is the repricing gap ($) for Chopra Bank if the planning period is 30 days? 1 year? 2 years? 5.2) What is the change in NII if interest rate would rise by 300 basis points within one yea from now? 5.3) From the calculation in Question 5.2, what do you see as the critical threat to the Neena bank? Sam Use the following information on Chopra Bank to answer Questions 1 and 2. Assume that the interest rate change would be equal to both Assets and Liabilities. Assets $m Liabilities & equity Vault Cash 50 Overnight interbank borrowing (1.00%) 150 T-notes: 1 month (2.05%) 100 1-yr Deposits (1.50%) 400 T-bonds: 3 year (3.50%) 400 2-year fixed-rate subordinated debt (2.55%) 190 Loans: 10 year (6.75%) 200 Equity 10 Total assets 750 Total liabilities and equity 335 5.1) What is the repricing gap ($) for Chopra Bank if the planning period is 30 days? 1 year? 2 years? 5.2) What is the change in NII if interest rate would rise by 300 basis points within one yea from now? 5.3) From the calculation in Question 5.2, what do you see as the critical threat to the Neena bank? Sam