The Evergreen Bank has purchased a bond that has a coupon rate of 5.5% and a face value of $1000. It has 11 years to maturity and is selling in the market for $887.52. The bond makes annual coupon payments. What is the yield to maturity on this bond? Answer 7% 5.5% 11% 4.70% None of the above

The Evergreen Bank has purchased a bond that has a coupon rate of 5.5% and a face value of $1000. It has 11 years to maturity and is selling in the market for $887.52. The bond makes annual coupon payments. What is the yield to maturity on this bond?
Answer

		7%
		5.5%
		11%
		4.70%
		None of the above

Answer
7%

A bank has an average asset duration of 5 years and an average liability duration of 9 years. This bank has total assets of $1000 million and total liabilities of $850 million. Currently, market interest rates are 5 percent. If interest rates rise by 2 percent (to 7 percent), what is this bank's duration gap? Answer -4 years 4 years 2.65 years -2.65 years 12.65 years

A bank has an average asset duration of 5 years and an average liability duration of 9 years. This bank has total assets of $1000 million and total liabilities of $850 million. Currently, market interest rates are 5 percent. If interest rates rise by 2 percent (to 7 percent), what is this bank's duration gap?
Answer

		-4 years
		4 years
		2.65 years
		-2.65 years
		12.65 years

Answer
-2.65 years

The Stuart State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be repriced with in the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days. Currently, the bank is earning 8% on its assets and is paying 5% on its liabilities. What is the dollar interest-sensitive gap of this bank? Answer -$200 -$100 $200 $300 $600

The Stuart State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be repriced with in the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days. Currently, the bank is earning 8% on its assets and is paying 5% on its liabilities. What is the dollar interest-sensitive gap of this bank?
Answer

		-$200
		-$100
		$200
		$300
		$600

Answer
$300

A bond has a face value of $1000 and coupon payments of $120 annually. This bond matures in three years and is selling in the market for $1160. Market interest rates are 6%. What is this bond's duration? Answer 3 years 5.71 years 1.96 years 2.71 years None of the above

A bond has a face value of $1000 and coupon payments of $120 annually. This bond matures in three years and is selling in the market for $1160. Market interest rates are 6%. What is this bond's duration?
Answer

		3 years
		5.71 years
		1.96 years
		2.71 years
		None of the above

Answer
2.71 years

The Evergreen Bank has purchased a bond that has a coupon rate of 5.5% and a face value of $1000. It has 11 years to maturity and is selling in the market for $887.52. The bond makes annual coupon payments. The Evergreen l Bank is planning on selling this bond at the end of 5 years for $1036.50. What is the holding period return on this bond? Answer 5.5% 7% 11% 9% None of the above

The Evergreen Bank has purchased a bond that has a coupon rate of 5.5% and a face value of $1000. It has 11 years to maturity and is selling in the market for $887.52. The bond makes annual coupon payments. The Evergreen l Bank is planning on selling this bond at the end of 5 years for $1036.50. What is the holding period return on this bond?
Answer

		5.5%
		7%
		11%
		9%
		None of the above

Answer
9%

A bank determines from an analysis on its deposits that account processing and other operating expenses cost the bank $3.95 per month. It has also determined that its non operating expenses on its deposits are $1.35 per month. The bank wants to have a profit margin which is 10 percent of monthly costs. What monthly fee should this bank charge on its deposit accounts? Answer $5.30 per month $3.95 per month $5.83 per month $5.70 per month None of the above

A bank determines from an analysis on its deposits that account processing and other operating expenses cost the bank $3.95 per month. It has also determined that its non operating expenses on its deposits are $1.35 per month. The bank wants to have a profit margin which is 10 percent of monthly costs. What monthly fee should this bank charge on its deposit accounts?
Answer

		$5.30 per month
		$3.95 per month
		$5.83 per month
		$5.70 per month
		None of the above

Answer
$5.83 per month

Ad help you in your study

Student earn money on this site