The following balance sheet is to be used to answer the questions below Yields for assets & liabilities shown in % in parenthesesAssets $M Liabilities & Equity $M Cash & Cash Equivalents 85 Overnight Repurchase Agreements 650 1 - month Treasury Bills (3%) 125 5 -year Fixed-rate Debt (4.5%) 450 3 - month Commercial Paper (3.75 %) 175 2 - year Consumer Loans (4.25 %) 235 Equity 160 5-year Adjustable-Rate Mortgages (3.5% resetting semiannually) 540 5 - year Fixed rate Municipal Bonds (4%) 100 Total Assets 1260 Total Liabilities &Equity 1260 a. Calculate the firm's repricing gap over the following intervals: $M 30 Days 90 Days 2 Years b. Compute the impact overthe next 90 days on net interest income under the following changes in interest rates $M +75bps -100bps c. Runoffs on consumer andmortgage loans over the next year above are $30M and $50M, respectively What would be the 1 - year repricing gap? $M d. Takinginto account the effect of runoffs, what is the effect on net interest income at the end of the year under the following changes ininterest rates? $M 75bps - 100bps

Part a: Explanation:Step 1: Identify the Assets and Liabilities Repricing within Each Interval- For…

Answered: The following balance sheet is to be…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 49E

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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?
You are given the following information. What is your liquidity ratio? Annual disposable income: $45,000 Total liabilities: $17,400 Annual savings: $2,400 Long-term assets: $85,000 Current ratio: 2 Debt-to-asset ratio: 0.2 Select one: a. 0.90 b. 0.56 c. 0.89 d. 0.53
The debt is amortized by the periodic payment shown Compute (a) the number of payments required to amortize the debt, (b) the outstanding principal at the time indicated Payment Interval 1 month Conversion Period quarterly Outstanding Principal After: dth payment Dobt Principal Debt Payment Interest Rate $17.000 $1.265 6% (a) The number of payments required to amortize the debt is (Round up to the nearest integer.) (b) The outstanding principal is s (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed)
The table below provides selected financial data for the Vogon Construction Co. in Years t and t-1. Interest Expense Short-Term Debt Long-Term Debt Total Liabilities Selected Financial Information Vogon Construction Co. Year t-1 Year t 32.4 12.6 61.0 67.1 140.0 461.0 35.3 388.4 What interest rate (on average) does the company pay on its borrowed funds? Express your answer in percentage form rounded to one decimal place.
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Given the following information, calculate the duration of assets and liabilities. Assets Amount Rate Duration Cash 90 Loans 800 12% 2 years Treasuries 110 9% 8 years Liabilities and Equity Time deposits 500 6% 1.75 years CDs 425 8% 2.50 years Equity 75
The debt is amortized by the periodic payment shown. Compute (a) the number of payments required to amortize the debt; (b) the outstanding principal at the time indicated. Payment Interval Conversion Debt PrincipalDebt Payment $14,000 Outstanding Principal After: 7th payment Interest Rate Period $875 1 month 12% monthly (a) The number of payments required to amortize the debt is. (Round the final answer up to the nearest whole number. Round all intermediate values to six decimal places as needed.) (b) The outstanding principal is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Determine the dollar settlement of the 3 x 6 FRA for the amount $300,000 assuming (a) the settlement occurs on the date of loan initiation and (b) if settlement occurs on the date of loan repayment. Use the following data to carry out the calculations. Interest rates are expressed as stated annual interest rates.
n the credit account statement below, the values of the annual percentage rate (APR), finance charge, and the new balance must be calculated. PreviousBalance AnnualPercentageRate (APR) MonthlyPeriodicRate(as a %) FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $1,026.61 1.75% $322.20 $300.00 Recall that the annual percentage rate (APR) is tied to the monthly periodic rate by the following formula. monthly periodic rate = APR 12 By solving this equation for the APR, the known value for the monthly periodic rate can be substituted to calculate the APR. APR = monthly periodic rate ✕ 12 The monthly periodic rate is given to be 1.75%. Find the APR. APR = 12 ✕ monthly periodic rate = 12 ✕ ____ % = ____%
The following loan was paid in full before its due date a) Find the value of h using an appropriate formula b) Use the actuarial method to find the amount of unearned interest c) Find the payoff amount Regular Monthly Payment # of Payments Remaining after Payoff APR 7.2% $247 8 What is the finance charge per $100 financed? h=$ (Round to the nearest cent)
Question 3: Use the following information on Assets to calculate the weighted average duration for each asset type in the "fill in the box" at the bottom of table. Assets: 3 year Consumer Loans with an average interest rate of 7% Cash Flow (CF) $561,300 $766,010 $2,702,883 $0 $0 Present Value Factor (PVF) 5 Year Commercial Loans with an average interest rate of 10% Cash Flow (CF) $755,299 $1,254,503 $1,855,631 $3,214,131 $4,005,543 Present Value Factor (PVF) A. Calculate the weighted average duration for 3-year consumer loans. show in the x.xx format | B. Calculate the weighted average duration for 5-year commercial loans. show in the x.xx format .935 .873 .816 N/A N/A .909 .826 .751 .683 .621

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