Mismatch in duration between its assets and liabilities

Assignment Help Financial Management

Reference no: EM131974456

1. Explain indirect flows of funds and give explanations for how the two types of financial institutions facilitate this indirect flow of funds?

2. Depository institutions generally have a mismatch in duration between its assets and liabilities.

Which one is generally higher? Give two options that can help lessen the mismatch.

3. You inherited 175000 from auntie paris. what is the maximum amount you can withdraw each year forever if the interest rate is 5.45% details on how to arrive to the answer. no excel please.

Reference no: EM131974456

Questions Cloud

World economic forum is a free worldwide association : World Economic Forum is a free worldwide association, whereas the Heritage Foundation is an exploration and instructive organization

Find the profitability index for series of future cash flows : Find the profitability index (PI) for the following series of future cash flows, assuming the company's cost of capital is 10.61 percent.

Compute the present value of a perpetuity : Find the present value of a perpetuity that pays $3800 every three years starting seven years from now. Assume the perpetuity has an annual effective rate.

Find the after-tax return to a corporation : Find the after-tax return to a corporation that buys a share of preferred stock at $33, sells it at year-end at $33, and receives a $3 year-end dividend.

Mismatch in duration between its assets and liabilities : Depository institutions generally have a mismatch in duration between its assets and liabilities.

Find the unpaid balance on the debt : Find the unpaid balance on the debt. (Round your answer to the nearest cent.) After 5 years of monthly payments on $150,000 at 5% for 25 years.

Calculate the present value of net benefits assuming : Calculate the present value of net benefits assuming that the benefits are realized at the end of each of the three years.

Find the required return on the common stock : Find the required return on the common stock of your assigned firm. To do this, first find the beta using the market model. Make sure you explain all your data.

What is the annual volatility and annual risk-free rate : What is the annual volatility? Find the annual risk-free rate. Find the arbitrage profit, and use the reverse cashflow approach to describe how to obtain it.

User Account

All Pages