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OZ Bank finances a $53000 2-year fixed-rate loan with a $70000 1-year fixed-rate CD. Use the repricing model to determine (a) the OZ Bank's repricing (or funding) gap using a 1- year maturity bucket, and (b) the impact of a 30 basis point (0.3%) increase in interest rates on OZ Bank's annual net interest income? OA. $17000,-$51 O B. $70000, $210 O C. -$70000,-$210 O D. -$70000, $210 O E. -$17000, $51

OZ Bank finances a $53000 2-year fixed-rate loan with a $70000 1-year fixed-rate CD. Use the repricing model to determine (a) the OZ Bank's repricing (or funding) gap using a 1- year maturity bucket, and (b) the impact of a 30 basis point (0.3%) increase in interest rates on OZ Bank's annual net interest income? OA. $17000,-$51 O B. $70000, $210 O C. -$70000,-$210 O D. -$70000, $210 O E. -$17000, $51

Essentials Of Investments
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
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OZ Bank finances a $53000 2-year fixed-rate loan with a $70000 1-year fixed-rate CD. Use the repricing model to determine (a) the OZ Bank's repricing (or funding) gap using a 1- year maturity bucket, and (b) the impact of a 30 basis point (0.3%) increase in interest rates on OZ Bank's annual net interest income? OA. $17000,-$51 O B. $70000, $210 O C. -$70000,-$210 O D. -$70000, $210 OE. -$17000, $51
Transcribed Image Text:OZ Bank finances a $53000 2-year fixed-rate loan with a $70000 1-year fixed-rate CD. Use the repricing model to determine (a) the OZ Bank's repricing (or funding) gap using a 1- year maturity bucket, and (b) the impact of a 30 basis point (0.3%) increase in interest rates on OZ Bank's annual net interest income? OA. $17000,-$51 O B. $70000, $210 O C. -$70000,-$210 O D. -$70000, $210 OE. -$17000, $51
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