A bank has da 24 years and dl 09 years the bank has total

Assignment Help Macroeconomics
Reference no: EM13377436

A bank has DA= 2.4 years and DL= 0.9 years. The bank has total equity of $82 million and total assets of $850 million. Interest rates are at 6%.

a.What is the bank's duration gap in years?
b. If interest rates increase 100 basis points then what will be the predicted dollar change in equity value?

Reference no: EM13377436

Questions Cloud

Your firm produces two products q1 and q2 an economic : your firm produces two products q1 and q2. an economic consulting firm has estimated your cost function to be c q1 q2
Describe johnson amp johnson current capital structurehas : describe johnson amp johnson current capital structurehas the capital structure changed significantly over time?is this
Walt disney world theme parks offer visitors a wide variety : walt disney world theme parks offer visitors a wide variety of ticket options. the one thing these ticket options have
Show how one can derive the change in market value of : show how one can derive the change in market value of equity as a function of adjusted duration gap asset size and
A bank has da 24 years and dl 09 years the bank has total : a bank has da 2.4 years and dl 0.9 years. the bank has total equity of 82 million and total assets of 850 million.
What according to the mainstream theory of the business : what according to the mainstream theory of the business cycle is the most common source of recession a decrease in
On 1 july 2010 cherry ltd acquired an item of plant for : on 1 july 2010 cherry ltd acquired an item of plant for 31864. on the same date cherry ltd entered into a lease
In the final round of a tv game show contestants have a : in the final round of a tv game show contestants have a chance to increase their current winnings of 1 million dollars
Determine what the tangible and intangible benefits are for : determine what the tangible and intangible benefits are for a a computer b a tube of toothpaste and c a beauty salon.i

Reviews

Write a Review

Macroeconomics Questions & Answers

  Diuscss the difference between income and wealth

What problems arise in estimating whether an equal income distribution is fair or not? Diuscss the difference between income and wealth?

  What could happen when foreign investors start investing

The PPF curve shows the economic choices a country can make about production given scarce resources, a given technology, and a given quantity of inputs. Assume you are a developing country, producing food and clothing at maximum capacity.

  Competitor cut their price also the industry sales declined

A major competitor cut their price also the industry sales declined to 8000 shoes per month, If the company wishes to restore

  Comparing total cost of watching movie

What might be included in the "total cost" of acquiring and watching movie on DVD? What about the "total cost" of seeing a movie at the multiplex?

  Now assume the government increases spending reducing

Now assume the government increases spending, reducing the country's savings rate based upon this change. What is the effect on the government spending on the economy.

  Determine efficient levels of information in an organization

Transaction costs are inherent in the trade-off between risks and uncertainties. Propose how one can determine the efficient levels of information in an organization to justify taking risk over uncertainty.

  Explian how you could make a profit from this situation

Assume that American rice sells for $100 per bushel Japanese rice sells for 1600 yen per bushel and the nominal exhange rate is 80 yen per dollar

  Illustrate recommendations would you make to congress

Illustrate recommendations would you make to Congress and the President for the management of fiscal policy.

  Find the profit-maximizing price and quantity

Suppose you work for a drug manufacturing corporation that holds a patent on Hair Grow, the world most effective drug for restoring hair.

  Also determine the level of profit or loss that the firm

Use the total cost (TC) schedule that is presented in the table below to determine the optimal rate of production when the firm can sell all of the output it produces at a price of $6.50 per unit. Also determine the level of profit (or loss) that the..

  Obtaining higher average payoff

Assume the 3 firms compete for market share over an infinite time horizon.  Each firm takes the present value of 1 dollar tomorrow to be X dollars today, where 0

  Elucidate how your explanation differs from the explanation

Elucidate how your explanation differs from the explanation for the downward sloping demand curve for a single product.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd