Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting


Home >> Accounting Basics

Assignment

You are expected to use the Excel file Assignment 2_Interest and Liquidity RiskAnalysis by performing and reporting the required computations in the spaces provided. Thecells of the different tabs are color-coded to better indicate where the computations must beperformed and the results reported. Yellow cells include input data and questions. Green cellsdelineate spaces where the computations must be performed and answers must be provided.

Section 1 - Static GAP Analysis

Perform the computation and answer the questions listed in the tab (Rate Sensitivity Report)by using the reported information. In order to complete the data in the balance sheet, you can make the following assumptions:

• The balance sheet and rate sensitivity report is based on a forecasted increase in both the prime and federal fund rates over the next two weeks and then constant rates for the foreseeable future.

• Money market investments include $7.2 million of corporate securities with adjustable rates pegged to the prime rate. The remaining balance includes fixed rate commercial paper securities maturing in 4 months ($6.3 million) and in 8 months ($15.2 million)

• Federal funds sold and reverse repos include overnight lending for $8.3 million and the remaining balance of $8 million include lending with evenly distributed maturities from 2 months to 5 months.

• Real estate installment loans with fixed rates include $180 million in exposure to residential real estate mortgages. Half of the mortgages are amortized loans withmonthly constant principal payments, an average APR of 4.7%, and an average maturity of 10 years. The other half of the mortgages include fixed payments amortized loans with an average APR of 5.1% and an average maturity of 15 years.

• The bank borrows $5.2 million in the federal fund market with overnight maturity

Complete the balance sheet using for aforementioned assumptions and then for each "time bucket" listed compute the listed measures:

• Period GAP
• Cumulative GAP
• GAP ratio
• Cumulative GAP-to-Earning Assets ratio.

Attachment:- Assignment_interest_and_liquidity_risk_analysis.rar

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92304781
  • Price:- $40

Priced at Now at $40, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Question - on january 1 grissom inc issued 10-year 4 bonds

Question - On January 1, Grissom Inc. issued 10-year, 4% bonds payable with a par value of $500,000, and received $490,000 in cash proceeds. The market rate of interest at the date of issuance was 4.5%. The bonds pay int ...

Questions -q1 tom is employed by aa ltd in the usa which is

Questions - Q1. Tom is employed by AA Ltd in the USA which is the parent company located in Los Angelos. Tom was transferred on the 30th of December 2017 to the subsidiary company in Brunswick Melbourne Victoria. AA Ltd ...

Question - mary is employed by a large public company in

Question - Mary is employed by a large public company. In 2017, she was granted options to acquire 1,000 shares of her employer's common stock at a price of $23 per share. At the time the options were granted, the shares ...

Question - primo industries collected 105000 from customers

Question - Primo Industries collected $105,000 from customers in 2015. Of the amount collected, $25,000 was for services performed in 2014. In addition, Primo performed services worth $40,000 in 2015, which will not be c ...

Question - yancey co receives 300000 when it issues a

Question - Yancey Co. receives $300,000 when it issues a $300,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2017. The terms provide for annual installment payments of $50,000 o ...

Question - sandhill inc leased equipment from tower company

Question - Sandhill, Inc. leased equipment from Tower Company under a 4-year lease requiring equal annual payments of $424152, with the first payment due at lease inception. The lease does not transfer ownership, nor is ...

Assignment 1 discussion-predicting and developing a

Assignment 1: Discussion-Predicting and Developing a Long-Term Growth Strategy To develop a strategic plan, as a nonaccounting manager, you need to analyze and link management accounting data and performance information ...

Question - nancy gives her grandson sean 20 acres of land

Question - Nancy gives her grandson, Sean, 20 acres of land. Her tax basis in the land is $25,000. Nancy's marginal tax rate for the current year is 45%; her grandson's is 25%. Its fair market value was $575,000 at the d ...

Question - in its first year of existence year 1 willow

Question - In its first year of existence (year 1), Willow Corp. (a C corporation) reports a loss for tax purposes of $50,000. In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of ...

Question - the calculated variable cost per unit of 18high

Question - The calculated variable cost per unit of $1.8 High Level of activity is: 1,691 units and $7,147cost. If the low level of activity was 530 units, calculate the fixed cost at the low level of activity?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved