3.Bank of Baruch (BOOK VALUES-$ millions)Assets:270 day US Treasury bills1 year construction note5 yr SOFR-based C&I loans10 year US Treasury bonds15 yr commercial mortgagesLiabilities:$350 Demand deposits$900 1 year Certificates of Deposit $800$200 5 year Notes$700 30 year Subordinated debt$500 Equity066$$100Notes: The 270-day US Treasury bills yield 2.25% p.a. The one-year construction notehas a coupon rate of 9% p.a. paid semi-annually and a yield of 8.5% p.a. with 0%amortization. The 5-year C&I loans, with a quarterly roll date, priced at SOFR + 400basis points, are currently selling at par. The 10 year U.S. Treasury bonds have a 4%p.a. coupon, yield 3.5% p.a., and have a duration of 8.38 years. The 15 year commercialmortgages are 100% amortized, have a fixed quarterly coupon, yield 5.5% p.a., are pricedat par, and have a duration of 6.6 years. The Demand deposits pay no interest, are pricedat par and turn over (reset) every quarter. The 1 year Certificates of Deposit have anannual coupon rate of 0.20% p.a. and are priced at par. The 5 year notes have a fixed 4%p.a. quarterly coupon rate, are priced at par with a duration of 4.63 years. The 30 yearSubordinated bullet bond has a coupon rate of 8% p.a. paid semi-annually, yields 7.4%p.a. and has a duration of 12.28 years.1.What is the bank's equity to asset ratio?a. $160 millionb. 6.04%c. 3.73%d. 5.4%e. 8.31%What is the 181 day cumulative repricing gap?a -$790 millionb. -$5.81 millionc. -$445.81 milliond. -$440 millione. +$9.25 million2.What is the impact on the bank's net interest income if interest rates increase25 basis points over the next 181 days?

The equity-to-asset ratio gauges a company's financial health by assessing the proportion of…

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Financial Reporting, Financial Statement Analysis and Valuation

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Chapter7: Financial Activities

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Bank of Charub ($ million)Assets: Liabilities and Net Worth:270 day US Treasury bills $500m 1 year Certificates of Deposit $550m2 year consumer loans Demand Deposits $750mFixed rate, 12% p.a. annually $275m 2 year Bonds $175m7 year commercial loans $350m Fixed rate, 7.5% p.a. annuallyFixed rate, 9% p.a. annually Overnight Fed Funds $350m10 year fixed rate mortgages $675mFixed rate, 6.5% p.a. monthly10 year floating rate mortgages $125m Equity $100mLIBOR+50bp, monthly roll dateNotes: The 1 year Certificates of Deposit pay 1.95% p.a. annually. The demand depositsare non-interest bearing and have a duration of zero. The 7 year commercial loans have aduration of 4.75 years. The fixed rate mortgages have a duration of 8.3 years. All valuesare market values.1. What is the duration of the floating rate mortgages?a. 0.25 yearsb. 10 yearsc. 2 yearsd. 0.08 yearse. There is not enough information to answer the question
Bank of Charub ($ million)Assets: Liabilities and Net Worth:270 day US Treasury bills $500m 1 year Certificates of Deposit $550m2 year consumer loans Demand Deposits $750mFixed rate, 12% p.a. annually $275m 2 year Bonds $175m7 year commercial loans $350m Fixed rate, 7.5% p.a. annuallyFixed rate, 9% p.a. annually Overnight Fed Funds $350m10 year fixed rate mortgages $675mFixed rate, 6.5% p.a. monthly10 year floating rate mortgages $125m Equity $100mLIBOR+50bp, monthly roll dateNotes: The 1 year Certificates of Deposit pay 1.95% p.a. annually. The demand depositsare non-interest bearing and have a duration of zero. The 7 year commercial loans have aduration of 4.75 years. The fixed rate mortgages have a duration of 8.3 years. All valuesare market values. 4. What is the duration of the 2 year consumer loans if they yield 6% p.a. with acoupon rate of 12% p.a. paid annually?a. 1.87 yearsb. 3.84 yearsc. 2 yearsd. 0.5 yearse. 1.9 years
Bank of Charub ($ million)Assets: Liabilities and Net Worth:270 day US Treasury bills $500m 1 year Certificates of Deposit $550m2 year consumer loans Demand Deposits $750mFixed rate, 12% p.a. annually $275m 2 year Bonds $175m7 year commercial loans $350m Fixed rate, 7.5% p.a. annuallyFixed rate, 9% p.a. annually Overnight Fed Funds $350m10 year fixed rate mortgages $675mFixed rate, 6.5% p.a. monthly10 year floating rate mortgages $125m Equity $100mLIBOR+50bp, monthly roll dateNotes: The 1 year Certificates of Deposit pay 1.95% p.a. annually. The demand depositsare non-interest bearing and have a duration of zero. The 7 year commercial loans have aduration of 4.75 years. The fixed rate mortgages have a duration of 8.3 years. All valuesare market values.3. What is the face value of the 2 year consumer loans if they yield 6% p.a. witha coupon rate of 12% p.a. paid annually?a. $175 millionb. $165 millionc. $247.7 milliond. $155 millione. $172 million
Bank of Charub ($ million)Assets: Liabilities and Net Worth:270 day US Treasury bills $500m 1 year Certificates of Deposit $550m2 year consumer loans Demand Deposits $750mFixed rate, 12% p.a. annually $275m 2 year Bonds $175m7 year commercial loans $350m Fixed rate, 7.5% p.a. annuallyFixed rate, 9% p.a. annually Overnight Fed Funds $350m10 year fixed rate mortgages $675mFixed rate, 6.5% p.a. monthly10 year floating rate mortgages $125m Equity $100mLIBOR+50bp, monthly roll dateNotes: The 1 year Certificates of Deposit pay 1.95% p.a. annually. The demand depositsare non-interest bearing and have a duration of zero. The 7 year commercial loans have aduration of 4.75 years. The fixed rate mortgages have a duration of 8.3 years. All valuesare market values. 2. What is the duration of the 2 year bonds they are selling at par at 7.5% p.a.interest, compounded annually?a. 1.93 yearsb. 1 yearc. 2 yearsd. 1.5 yearse. 3.86 years
Bank of Charub ($ million)Assets: Liabilities and Net Worth:270 day US Treasury bills $500m 1 year Certificates of Deposit $550m2 year consumer loans Demand Deposits $750mFixed rate, 12% p.a. annually $275m 2 year Bonds $175m7 year commercial loans $350m Fixed rate, 7.5% p.a. annuallyFixed rate, 9% p.a. annually Overnight Fed Funds $350m10 year fixed rate mortgages $675mFixed rate, 6.5% p.a. monthly10 year floating rate mortgages $125m Equity $100mLIBOR+50bp, monthly roll dateNotes: The 1 year Certificates of Deposit pay 1.95% p.a. annually. The demand depositsare non-interest bearing and have a duration of zero. The 7 year commercial loans have aduration of 4.75 years. The fixed rate mortgages have a duration of 8.3 years. All valuesare market values. 5. What is the convexity of the 2 year consumer loans if they yield 6% p.a. witha coupon rate of 12% p.a. paid annually?a. 4.98b. 2.83c. 3.85d. 1.95e. 2.01
j1
Assets Market Value Cash $150.00 Loans $600,00 T-Bond Total 1.97 124 $450.00 $1,200.00 What is the bank's duration gap? 0.55 Ⓒ-0.69 Ⓒ-162 Rate 6.00% 3.00% Duration (Years) Liabilities and Equity Time Deposits CDs 275 8.50 Equity Total Market Value $750.00 $400.00 $50.00 $1,200.00 Rate 225% 1.50% Duration (Years) 1.75 4.50
Given the balance sheet of XYZ Bank appears below. All figures in millions of U.S. dollars, the total one-year rate-sensitive assets is Assets 1 Short-term consumer loans (one-year maturity) 2 Long-term consumer loans 3 Three-month Treasury bills 4 Six-month Treasury notes 5 Three-year Treasury bond 6 10-year, fixed-rate mortgages 7 30-year, floating-rate mortgages (rate adjusted every nine months) Liabilities $ 150 1 Equity capital (fixed) $ 120 125 2 130 3 135 4 170 5 Demand deposits (two-year maturity) Passbook savings Three-month CDs Three-month bankers acceptances 120 6 Six-month $970 commercial paper 140 7 One-year time deposits 8 Two-year time deposits 40 130 140 120 160 120 40 $970 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company's general borrowings for the year: 10% loan repayable 20X9 8% loan repayable 20Y2 Select one: O a. £850,000 O b. £892,500 O c. £305,625 d. £500,000 e. £541,875 O f. £425,000 £m 25 75 Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £4.5 million on that date to fund construction. On 1 September 20X8 an additional £6 million was withdrawn for the same purpose. Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8.
Assets Cash Loans T-Bond Total $17.71 O $22.88 $34.12 $47.90 Market Value O $50.63 $150.00 $600.00 $450.00 $1,200.00 Rate What is the bank's interest expense? 6.00% 3.00% Duration (Years) Liabilities and Equity Time Deposits CDs 2.75 850 Equity Total Market Value $750.00 $400.00 $50.00 $1,200.00 Rate 2.25% 1:50% Duration (Years) 1.75 4.50
Required journal entries Total cash payment = 500000*10%*1/2 = $25, 000 Discount on bonds payable = (10240/64) *4 = $640 My question is the formula of the Total cash payment and Discount on bonds payable.
QUESTION: 1 State Bank's balance sheet is listed below. Market yields are in parentheses, and amounts are in millions. Assets Liabilities and Equity $ 20 $ 250 20 Cash Fed funds (5.05%) 3-month T-bills (5.25%) 2-year T-notes (6.50%) 8-year T-notes (7.50%) 5-year munis (floating rate) (8.20%, repriced @ 6 months) 6-month consumer loans (6%) 1-year consumer loans (5.8%) 5-year car loans (7%) 7-month C&l loans (5.8%) 2-year C&l loans (floating rate) (5.15%, repriced @ 6 months) 15-year variable-rate mortgages (5.8%, repriced @ 6 months) 15-year variable-rate mortgages (6.1%, repriced @ year) 15-year fixed-rate mortgages (7.85%) 30-year variable-rate mortgages (6.3%, repriced O quarter) 30-year variable-rate mortgages (6.4%, repriced @ month) 30-year fixed-rate mortgages (8.2%) Premises and equipment Total assets Demand deposits Savings accounts (1.5%) MMDAS (4.5%) (no minimum balance requirement) 3-month CDs (4.2%) 6-month CDs (4.3%) 1-year CDs (4.5%) 2-year CDs (5%) 4-year CDs (5.5%)…

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1. What is the bank's equity to asset ratio? a. $160 million b. 6.04% c. 3.73% d. 5.4% e. 8.31%