Consider the following balance sheet for Watchoveru Savings Incorporated ($ in millions): Assets Floating-rate mortgages (currently 14% annually) 30-year fixed-rate loans (currently 11% annually) Total Liabilities $62 NOW accounts (currently 10% annually) Time deposits (currently 10% annually) Equity 62 a. What is WatchoverU's expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 2 percent? a Net interest income b Net interest income $ 124 million million (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g.. 32.16)) $:82 27 15 $ 124
Consider the following balance sheet for Watchoveru Savings Incorporated ($ in millions): Assets Floating-rate mortgages (currently 14% annually) 30-year fixed-rate loans (currently 11% annually) Total Liabilities $62 NOW accounts (currently 10% annually) Time deposits (currently 10% annually) Equity 62 a. What is WatchoverU's expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 2 percent? a Net interest income b Net interest income $ 124 million million (For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g.. 32.16)) $:82 27 15 $ 124
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
Related questions
Question
A 24.
Subject:- finance
Transcribed Image Text:Consider the following balance sheet for Watchoveru Savings Incorporated ($ in millions):
Assets
Floating-rate mortgages (currently 14% annually)
30-year fixed-rate loans (currently 11% annually)
Total
Liabilities
$62 NOW accounts (currently 10% annually)
Time deposits (currently 10% annually)
Equity
62
a. What is WatchoverU's expected net interest income at year-end?
b. What will be the net interest income at year-end if interest rates rise by 2 percent?
a
Net interest income
b Net interest income
$ 124
million
million
(For all requirements, do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. (e.g..
32.16))
5:82
27
15
$ 124
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