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 income at
year-end if interest rates rise by 2 percent? (Enter your
answer in millions rounded to 2 decimal places. (e.g.,
32.16))
c. Using the one-year cumulative repricing gap
model, what is the change in the expected net interest income for a
2 percent increase in interest rates? (Negative amount
should be indicated by a minus sign. Enter your answer in millions
rounded to 2 decimal places. (e.g., 32.16))
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
Consider the following balance sheet for Watchover Savings Inc. (in millions): Assets Liabilities and Equity Floating-rate...
Consider the following balance sheet for Watchover Savings Inc. (in millions Floating rate mortgages (currently 12% p.a.) 30-year fixed-rate loans (currently p.a.) $ 92 106 $121 Liabilities and Equity Now deposits (currently p.a.) 5-year tine deposits (currently p.a.) Louity Total Total $198 .. What is Watchover's expected net interest income at year-end? (Enter your answer in millions rounded to 2 decimal places. (e. 32.18) b. What will be the net interest income at year-end If interest rates rise by 3...
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...
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): 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. ($ 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. (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 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?
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)
1. Consider the following Balance Sheet for Total Caribbean Bank(TCB) (in millions) ASSETS LIABILITIES Floating rate mortgages 120 Demand deposits 110 (currently 12% annually) (currently 3% annually) 30 years fixed rate loans 1 year CD 50 (currently 7% annually) 80 (currently 6% annually) Equity 40 200 200 a. What is TCB expected net interest income (NII) at year end? (1mark) b. What is TCB expected net interest income at year end if interest rates grew by 500 basis points. (1...
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...