Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

There's a commercial bank is only answer I loan portfolio $100 million for 30 year fixed-rate mortgages with annual payments and who's only liabilities are single 90,000,000 1 yr certificate of deposit which gets reissued every year at the market rate of interest. the 30 year mortgages have an average interest rate of 6% and CD currently has an interest rate 3%
A) find out the annual interest income, annual interest expense on the CD, and the net interest income for the bank (interest income - interest expense)

B) find out the return on assets for the bank assume after one year interest rate rise by for 4% short-term interest rates for one year CDs right to 7% repeat .
C) assume that after one year interest rates fall by 2% interest rate for one year CDs fall to 1%

three-year thousand dollars face value treasury zero-coupon security cells today for 851.6137 when the consumer price index is 192. assume the real rate of interest is 2%. Use formula R=r+inflation.
A) find out the three-year nominal interest-rate (bond yield) on the bond(R)
B) find out the expected average annual compound inflation rate over the next three years.
C) if the CPI in three years is 216 find out the average annual compound rate of actual inflation over the three years using a time value money calculation based on the formula pv(1+I)^n=fv
D) if the CPI in three years is 210 find out the actual real rate of interest earned on the bond following the same procedure as an part C

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927679

Have any Question? 


Related Questions in Basic Finance

1 why do self-report scales use many different items that

1. Why do self-report scales use many different items that assess the same conceptual variable? 2. Consider a measure that shows high internal consistency but low test-retest reliability. What can be concluded about the ...

Financial assignmentpart 1 at november 30 2012 silver

Financial Assignment Part 1: At November 30, 2012, Silver Traders Company had the following trial balance. There is detailed information on the next page about December 2012 transactions that need to be recorded. Silver ...

Consider the following listing for 10-year treasury note

Consider the following listing for 10-year Treasury note futures on the Chicago Board of Trade. One futures contract for Treasury notes = $100,000 face value of 10-year 6% notes. a. If on this day you bought two contract ...

1 explain the rationale behind time series designs2

1. Explain the rationale behind time series designs. 2. Describe the simple interrupted time series design. 3. Why is contemporary history a threat to internal validity in a simple interrupted time series design?

Why is the capms assumption that investors can borrow and

Why is the CAPM's assumption that investors can borrow and lend at the risk-free rate questionable? What is meant by the "homogeneous assumption" in the CAPM? What is meant by the law of one price, and what does it imply ...

1 what are three advantages of factorial experimental

1. What are three advantages of factorial experimental designs over one-way experimental designs? 2. What are main effects, simple effects, and interactions? How should significant main effects be interpreted when one or ...

Write a ten page essay about investnment the essay can be

Write a ten page essay about investnment. The essay can be about why is it so appealing to learn investment, what are some benefits of learning investment, who are some best investors in the world, what were my favorite ...

A 1000 bond is paying a coupon interest rate of 7 the

A $1,000 Bond is paying a coupon interest rate of 7%. The current Required Rate of Return in the market is 5%. If you were buying this Bond on the market today, would you expect to pay more than $1,000 for it (Premium) o ...

Use the same information as in problem now assume a loan

Use the same information as in problem. Now assume a loan for $1.5 million is obtained at a 10 percent interest rate and a 15-year term. a. Calculate the expected IRR on equity and the standard deviation of the return on ...

1 how can restrictive covenants in bonds be both an agency

1. How can restrictive covenants in bonds be both an agency cost of debt and a way to prevent agency costs of debt? 2. What are the trade-offs in the agency cost/tax shield trade-off model? How is the firm's optimal capi ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro