help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / ABC National Bank (5 Millions) Assets Liabilities and Equity Rate Sensitive $200 (1296) Rate Sensitive $300 (696) Non Rate Sensitive 400 (1196) Non Rate Sensitive 300 (596) Non Earning 100 Equity 100 Total Assets $700 Total Liabilities and Equity 5700 Don't use symbols (5

ABC National Bank (5 Millions) Assets Liabilities and Equity Rate Sensitive $200 (1296) Rate Sensitive $300 (696) Non Rate Sensitive 400 (1196) Non Rate Sensitive 300 (596) Non Earning 100 Equity 100 Total Assets $700 Total Liabilities and Equity 5700 Don't use symbols (5

Finance

ABC National Bank (5 Millions) Assets Liabilities and Equity Rate Sensitive $200 (1296) Rate Sensitive $300 (696) Non Rate Sensitive 400 (1196) Non Rate Sensitive 300 (596) Non Earning 100 Equity 100 Total Assets $700 Total Liabilities and Equity 5700 Don't use symbols (5. 96...) a. What is the IS GAP? I b. What Is Net Interest Income? c. What is Net Interest Margin? d. How much will net interest income change if interest rates fall by 200 basis points?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

a. -100
GAP = Asset Rate Sensitive - Liability Rate Sensitive = $200 - $300 = $-100.

b. 35
Net interest income = ($200) (12%) + ($400) (11%) ($300) (6%) ($300) (5%) = $24 + $44 $18 $15 = $35.

c. 5.8
Net interest margin =$35/$600 = 5.8%.

d. 37
The interest rates change by 200 basis points, net interest income would be ($200) (10%) + ($400) (11%) ($300) (4%)- ($300) (5%) = $20 + $44 - $12 $15 = $37.

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)