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it is january 1 your firm expects to issue borrow three- month eurodollar time deposits at the beginning of february
discuss the role of a third party intermediary in an interest rate swap agreement describe the risks assumed by the
what features of interest rate swaps make them more or less attractive than financial futures as a risk management
a basic interest rate swap is priced as a zero net present value transaction explain what this means use the two year
is there credit risk in an interest rate swap with an intermediary bank serving as the swap dealer describe when
consider the following asset and liability structurescounty bankasset 10 million in a one- year fixed- rate commercial
assume that you manage the interest rate risk position for your bank your bank currently has a positive cumulative gap
list the basic steps in dgap analysis what is the importance of different interest rate
suppose that your bank currently operates with a dgap of 22 years which of the following will serve to reduce the banks
an embedded option associated with each of the following instruments potentially alters the rate sensitivity of the
what information is available from earnings sensitivity analysis that is not provided by static gap
interpret the following earnings at risk data what does it suggest regarding the banks risk exposureearnings- at-
are the following assets rate sensitive within a six- month time frame explaina three- month t- billb federal funds
consider the following bank balance sheet and associated average interest rates the time frame for rate sensitivity is
suppose that your bank buys a t- bill yielding 4 percent that matures in six months and finances the purchase with a
what is the fundamental weakness of the gap ratio as compared with gap as a measure of interest rate
discuss the problems that loans tied to a banks base rate present in measuring interest rate risk where the base rate
six years ago you placed 250 in a savings account which is now worth 104028 when you put the funds into the account
if you invest 9000 today at 8 percent compounded annually but after three years the interest rate increases to 10
suppose a customers house increased in value over five years from 150000 to 250000 what was the annual growth rate of