The writer is very fast, professional and responded to the review request fast also. Thank you.
Hedge Row Bank has the following balance sheet (in millions):
Assets$200 Liabilities$180 Equity20 Total$200 Total$200
The duration of the assets is 6 years and the duration of the liabilities is 4.3 years. The bank is expecting interest rates to fall from 14 percent to 13 percent over the next year.
a.What is the duration gap for Hedge Row Bank? (Round your answer to 2 decimal places. (e.g., 32.16))
Duration gap years
b.What is the expected change in net worth for Hedge Row Bank if the forecast is accurate? (Enter your answer in millions rounded to 3 decimal places. (e.g., 32.161))
Expected change in net worth$ million
c.What will be the effect on net worth if interest rates increase 100 basis points?
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more