What is the duration Notes

  • What is the duration of Snowman's portfolio of earning assets and of its deposits and money market borrowings?

    [http://student.land/what-is-the-duration-of-snowmans-portfolio-of-earning-assets-and-of-its-deposits-and-money-market-borrowings/](http://student.land/what-is-the-duration-of-snowmans-portfolio-of-earning-assets-and-of-its-deposits-and-money-market-borrowings/)"},{"left":"What is the duration of Snowman's portfolio of earning assets and of its deposits and money market borrowings?\n\n


  • What is the duration of Snowman's portfolio of earning assets and of its deposits and money market borrowings?

    http://student.land/what-is-the-duration-of-snowmans-portfolio-of-earning-assets-and-of-its-deposits-and-money-market-borrowings/\n\nxpected Cash Inflows of Principal and Interest Payments\n\nAnnual Period in Which Cash Receipts are Expected\n\n$ 1,275, 600\n\nCurrent Year\n\n$ 746, 872\n\nTwo years from today\n\n$ 341,555\n\nThree years from today\n\n$ 62, 482\n\nFour years from today\n\n$ 9,871\n\nFive years from today\n\nDeposits and money market borrowing are expected to require each of the following cash outflows.\n\nExpected Cash Outflows of Principal and Interest Payments\n\nAnnual Period During Which Cash Payment Must Be Made.\n\n$ 1,295,500\n\nCurrent Year\n\n$ 831,454\n\nTwo years from today\n\n$ 123,897\n\nThree years from today\n\n$ 1,005\n\nFour years from today\n\n---------\n\nFive years from today\n\nWhat is the duration of Snowman's portfolio of earning assets and of its deposits and money market borrowings?\n\nWhat will happen to the bank's total returns, assuming all other factors are held constant, if interest rates rise? If interest rate fall?\n\nGiven the size of the duration gap you have calculated, in what type of hedging should Snowman engage?\n\nSuppose the interest rate began at 4.25% and rose to 4.75%. If the bank has total assets of $20 billion, and total liabilities of $18 billion, by how much would the value of Snowman's net worth change as a result of this movement in interest rates?"},{"left":"","right":""},{"left":"","right":""},{"left":"","right":""}]


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