Consider the following balance sheet for Northern Highland Credit Union (NHCU) before answering parts (i) through (v). Assets ($ million) $ Liabilities ($ million) $ Cash 30 Overnight interbank borrowing (7.00%) 160 T-notes 2 month (7.05%) 60 2-year CD (5%) 20 T-notes 3 months (7.25%) 80 7 year fixed rate Subordinated debt (8.55%) 150 T-notes two-year (7.50%) 60 Equity 25 T-notes 10-year (8.96%) 100 Corporate bonds (>5 years to maturity) 25 Total assets 355 Total liabilities and Equity 355 What is the repricing (funding) gap over the 0-to-6 months maturity bucket?
Consider the following balance sheet for Northern Highland Credit Union (NHCU) before answering parts (i) through (v). Assets ($ million) $ Liabilities ($ million) $ Cash 30 Overnight interbank borrowing (7.00%) 160 T-notes 2 month (7.05%) 60 2-year CD (5%) 20 T-notes 3 months (7.25%) 80 7 year fixed rate Subordinated debt (8.55%) 150 T-notes two-year (7.50%) 60 Equity 25 T-notes 10-year (8.96%) 100 Corporate bonds (>5 years to maturity) 25 Total assets 355 Total liabilities and Equity 355 What is the repricing (funding) gap over the 0-to-6 months maturity bucket?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
- Consider the following balance sheet for Northern Highland Credit Union (NHCU) before answering parts (i) through (v).
|
Assets ($ million) |
$ |
Liabilities ($ million) |
$ |
|
Cash |
30 |
Overnight interbank borrowing (7.00%) |
160 |
|
T-notes 2 month (7.05%) |
60 |
2-year CD (5%) |
20 |
|
T-notes 3 months (7.25%) |
80 |
7 year fixed rate Subordinated debt (8.55%) |
150 |
|
T-notes two-year (7.50%) |
60 |
Equity |
25 |
|
T-notes 10-year (8.96%) |
100 |
|
|
|
Corporate bonds (>5 years to maturity) |
25 |
|
|
|
Total assets |
355 |
Total liabilities and Equity |
355 |
- What is the repricing (funding) gap over the 0-to-6 months maturity bucket?
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