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What is the minimum capital required if there are no reserve requirements?
Assume an FI originates a pool of short-term real estate loans worth $20 million with maturities of five years and paying interest rates of 9 percent.
There is a lump sum payment at the maturity of the GNMA pass-through that equals 50 percent of the mortgage pool's face value.
The maturity is 30 years with a monthly mortgage payment of 10 percent per year.
The Manager of Finance, Brian Stewart, has requested that you, as the Payroll Supervisor, prepare a communication for the employees.
Define working capital. Distinguish between the current ratio and the acid-test ratio.
What is the repricing or funding gap if the planning period is 30 days? 91 days? 2 years?
The DI currently has borrowed $6 million in fed funds and $2 million from the Fed discount window to meet seasonal demands.
A mutual fund has $1 million in cash and $9 million invested in securities. It currently has 1 million shares outstanding.
What is a maturity bucket in the repricing model? Why is the length of time selected for repricing assets and liabilities important when using the repricing .
What is the relationship between duration and the price of the fixed-income security?
What are the differences between the economist's definition of capital and the accountant's definition of capital?
Why is the market value of equity a better measure of a bank's ability to absorb losses than book value of equity?
What is the duration of Gotbucks Bank's (GBI) fixedrate loan portfolio if the loans are priced at par?
What is the expected change in the price of the bond if interest rates are expected to decline by 0.5 percent?
What is the market value of the insurance company's $90 million liability when interest rates rise by 1.5 percent?
What is a naive hedge? How does a naive hedge protect an FI from risk?
Propose a swap that would result in each FI having the same type of assets and liabilities.
Is this expected to be a profitable transaction ex ante? What are the cash flows if exchange rates are unchanged over the next three years?
Bank 1 can issue five-year CDs at an annual rate of 11 percent fixed or at a variable rate of LIBOR 2 percent.
What is the difference between loans sold with recourse and without recourse from the perspective of both sellers and buyers?
Why are yields higher on loan sales than they are for similar maturity and issue size commercial paper issues?
How Walmartcompares to the industry averages in terms of financial profitability, liquidity and solvency.
Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows.
What is the expected change in net worth for Hedge Row Bank if the forecast is accurate?