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Consider the following balance sheet for Watchover Savings Inc. (in millions Floating rate mortgages (currently 12%...
Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Floating-rate mortgages (currently 11% p. a.) 30-year fixed-rate loans (currently 8% p. a.) $ 98 109 Liabilities and Equity Now deposits (currently 7% p. a.) 5-year time deposits (currently 7% p. a.) Equity Total $124 36 47 $207 Total $207 a. What is Watchover's expected net interest income at year-end? (Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) b. What will be the net...
Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Liabilities and Equity Floating-rate mortgages (currently 10% p.a.) $ 94 Now deposits (currently 6% p.a.) $ 122 30-year fixed-rate loans (currently 7% p.a.) 107 5-year time deposits (currently 6% p.a.) 33 Equity 46 Total $ 201 Total $ 201 a. What is Watchover’s expected net interest income at year-end? (Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) b. What will be the net interest...
Problem 22-3 (LG 22-1) Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Floating-rate mortgages (currently 10% p.a.) 30-year fixed-rate loans (currently 7% p.a.) $ 68 94 Liabilities and Equity Now deposits (currently 67 p.a.) 5-year time deposits (currently 66 p.a.) Equity Total $109 17 36 $162 Total $ 162 a. What is Watchover's expected net interest income at year-end? (Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) b. What will be the...
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions): Liabilities Assets Floating-rate mortgages (currently 11% annually) 30-year fixed-rate loans (currently 8% annually) $ 51 $71 NOW accounts (currently 7% annually) Time deposits (currently 7% annually Equity 51 21 10 $102 $102 Total a. What is WatchoverU's expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 1 percent? (For all requirements, do not round intermediate calculations....
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions): Assets Liabilities Floating-rate mortgages (currently 12% annually) $ 52 NOW accounts (currently 8% annually) $ 72 30-year fixed-rate loans (currently 9% annually) 52 Time deposits (currently 8% annually) 20 Equity 12 Total $ 104 $ 104 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 3 percent? (For all requirements, do not...
Consider the following balance sheet for WatchoverU Savings Inc. (S in millions): Liabilities Assets NOW accounts (currently 8 % annually) Time deposits (currently 8% annually) Equity $ 81 Floating-rate mortgages (currently 12% annually) 30-year fixed-rate loans (currently 9% annually) 61 61 29 12 $122 Total $122 a. What is WatchoverU's expected net interest income at year-end? b. What will be the net interest income at year-end if interest rates rise by 3 percent? (For all requirements, do not round intermediate...
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions): Assets Liabilities Floating-rate mortgages (currently 13% annually) $ 59 NOW accounts (currently 9% annually) $ 79 30-year fixed-rate loans (currently 10% annually) 59 Time deposits (currently 9% annually) 29 Equity 10 Total $ 118 $ 118 What will be the net interest income at year-end if interest rates rise by 4 percent? Express your answer in millions of dollars (e.g. 3,260,000=3.26)
Consider the following balance sheet for WatchoverU Savings Inc. ($ in millions): Assets Liabilities Floating-rate mortgages (currently 11% annually) $ 65 NOW accounts (currently 7% annually) $ 85 30-year fixed-rate loans (currently 8% annually) 65 Time deposits (currently 7% annually) 32 Equity 13 Total $ 130 $ 130 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?
3. Hedge Row Bank has the following balance sheet (in millions): $ 189 $210 Liabilities Assets Equity 21 $ 210 $210 Total Total The duration of the assets is 7 years and the duration of the liabilities is 5 years. The bank is expecting interest rates to fall from 10 percent to 9 percent over the next year. a. What is the duration gap for Hedge Row Bank? (Round your answer to 2 decimal places. (e.g., 32.16)) b. What is...
Suggested time: 60 minutes. Answer both questions. 1. Consider the following balance sheet for DeMontfort Savings Bank plc. (in millions): Liabilities and Equity Demand deposits Assets Floating-rate mortgages (currently 10% annually) 30-year fixed-rate loans (currently 7% annually) E70 £50__ (currently 6%,annually). Time deposits (currently 6% annually) £20 £10 Total Liabilities & Equity £100 £50 Equity Total Assets £100 What is DeMontfort Savings Bank's expected net interest income (a) at year-end? (3 marks) (b) What will be the net interest income...