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accounting assignment

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Question;Total Assets 80;Floating;rate mortgages $ 40;(Currently 9% annuall7);30-year fixed rate loans;(Currently 6% annuall7) 40;Liabilities and Equity;1-year time deposits;(currently 5% annually);$ 50;3-year time deposits;(Currently 7% annually);20;Equity 10;Total liabilities and equity 80;a. What Is X?s expected net interest income at year end?;b. What will net interest income be if interest rates rise by 1 percent?;c. Using the cumulative repricing gap model, what is the expected net interest;income for a 1 percent increase in interest rates?;d. What will net interest income be at year end if interest rates on rate;sensitive assets increase by 1% but interest rates on rate sensitive;liabilities increase by 0.5%?;Additional Requirements;Level of Detail: Show all work

 

Paper#44044 | Written in 18-Jul-2015

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