0-90 days 91-180 days 180+days Total Assets 15000 25000 60000 100,000 Liabilities &NW 35000 15000 50000 100,000 Assume that interest rates on interest sensitive assets are currently 12% and interest sensitive liabilities are 9%. Also assume that interest rates on fixed assets are 15% and fixed liabilities are 11%. Calculate the following for 91 to 180 days: 1. Interest Sensitive Gap 2. Net Interest Income 3. Interest Sensitive Ratio 4. Relative IS Gap Write only your final answers in the box given below

0-90 days 91-180 days 180+days Total Assets 15000 25000 60000 100,000 Liabilities &NW 35000 15000 50000 100,000 Assume that interest rates on interest sensitive assets are currently 12% and interest sensitive liabilities are 9%. Also assume that interest rates on fixed assets are 15% and fixed liabilities are 11%. Calculate the following for 91 to 180 days: 1. Interest Sensitive Gap 2. Net Interest Income 3. Interest Sensitive Ratio 4. Relative IS Gap Write only your final answers in the box given below

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

ACTIVITY 1 Directions: Complete the table by solving using compound interest. If the maturity value is rolled out at 6% every 120 days for 2 years at the end of the period, it will accumulate an interest of: Period Term Interest I = Prt Maturity value A= P+ I Example 1 P1,000.00 P102,010.00 120 360 240 P1,030.30 360 360 P1.050.01 360 480 P108,285.67 360 600 P1,093.69 360 6. 720 P112,682.51 360
Question 2 Instead of 1 loan been disbursed, assumed a portfolio of loans been disbursed with % distribution of tenure (on amount), interest rate and overall disbursal as follows Overall portfolio disbursal Annualized Interest rate Monthly interest rate Assume all loans are disbursed at the above interest rate only, interest is applied monthly on declining balance method (same as in question 1) Tenure % Distribution 5.00% 1 2 5.00% 3 10.00% 2.00% 5.00% 25.00% 2.00% 2.00% 15.00% 2.00% 2.00% 25.00% 4 5 6 7 8 9 10 11 12 Answer the following question (complete the empty table) Sl.no 1 2 3 4 1,00,000 15% 1.25% Disribution Amount Balance outstanding at start of period 1,00,000 5000 5000 10000 2000 5000 25000 2000 2000 15000 2000 2000 25000 1 what will be the balance outstanding of the whole portfolio at the end of every month 2 What is the payment received every month What is the principal paid and interest paid every month Payment received (EMI amount) Principal paid Interest paid Balance…
Compound Interest In Exercises 71 and 72, youinvest $2500 in an account at interest rate r, compoundedcontinuously. Find the time required for the amount to(a) double and (b) triple.71. r = 0.025 72. r = 0.0375
The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's simple interest rate r. P = $2300, A = $2722, t = 6 months.
When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 O C. $586 OD. $622 I
Which of the following 4 loans has the lowest interest rate risk to the lenders? Loan 1 Loan 2 Loan 3 Loan 4 Initial Interest rate 5.00% 3.75% 4.50% 4.00% Loan Maturity (in 30 30 30 30 years) Margin above the n/a 3% 3% 3% index every Adjustment interval n/a every year every year year 1% per 3% per Interest rate cap n/a None year year Loan 1 Loan 2 Loan 3 Loan 4 O Cannot determine
Find the amount (in $) of interest and the maturity value of the loans. Use the formula MV = P + I to find the maturity value. Principal Rate (%) Time Interest Maturity Value $97,000 8 1 4 4 1 2 years $ $
Complete the following, using ordinary interest. (Use Days in a year table.) (Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent.) Maturity value Principal Interest rate Date borrowed Date repaid $1,500 Exact time Interest 8% Mar. 12 June 15 95 %24 %24 **** T:..
Find the principal and the interest amount. Present Value Interest Amount Future Value Interest (Principal) (Maturity Value) Time Rate $2676.15 4.9% 103 days The principal is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The interest amount is $ 1 (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) un
13 When interest is calculated for periods shorter than a year, the formula to calculate interest is: Multiple Choice I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = number of months. I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = (number of months ÷ 12). I = P × R × T, where I = interest calculated, P = principal, R = monthly interest rate, and T = (number of months ÷ 12). I = (MV − P)/T, where I = interest calculated, MV = maturity value, P = principal and T = number of months.
Use Table 9. Assume there is a loan loss of $4. What is the old and new capital ratio? Reserves Loans 17.65%, 11,46% O 17.65%, 12.94% 15.00 %, 11.00% O 15.00 %, 11.46% Table 9 10 90 Deposits Capital 85 15
Determine the present value of the following single amounts: Future Amount Interest Rate No. of Periods $20,000 14,000 1. 7% 10 12 2. 12 3. 25,000 20 40,000 10 4.