You calculate that the duration of your assets of your bank is 5.6 years and the...

80.2K

Verified Solution

Question

Finance

You calculate that the duration of your assets of your bank is5.6 years and the duration of your liabilities is 4.2 years. Youcurrently have $70 million in liabilities and $5 million in equity.The interest rate is currently 4%. Calculate the change in networth if interest rates decrease by 20 basis points.

Answer & Explanation Solved by verified expert

3.6 Ratings (672 Votes)

See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

You calculate that the duration of your assets of your bank is5.6 years and the duration of your liabilities is 4.2 years. Youcurrently have $70 million in liabilities and $5 million in equity.The interest rate is currently 4%. Calculate the change in networth if interest rates decrease by 20 basis points.

You calculate that the duration of your assets of your bank is 5.6 years and the...

80.2K

Verified Solution

Question

Finance

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students