1. You are asked to determine the market value(mark-to-market) balance sheet for Angus State Bankand loan duration (amounts in $ thousands and duration in years):
Book Value Market Value
Assets Amount Amount Duration
T-bills $ 180 $ 180 0.50
Loans* 5,000 ______ _____
Total Assets 5,180 ______
Liabilities
Deposits 4,184 4,184 0.50
Total Liabilities 4,184 4,184
Equity 996 ______
Total Lia and NW 5,180 ______
*Since this is a simple bank, it has only one type of loan. The loan has a $5,000 book value (current outstanding principal), amortized loan with annual payments, an interest rate of 6.5 percent, and 20-years to maturity. Similar amortized loans today (market interest rate for similar loans) have an interest rate of 7 percent which, is the market yield.
a.Using Excel, determine the market value and duration of the loan and fill in the blanks in the balance sheet above. Please include a copy of your Excel Spreadsheet with your completed exam (you can copy and paste as a picture).
b. What is the average duration of all the assets and what is the average duration of all the liabilities?
Average Duration of Assets: = ______ years
Average Duration of Liabilities:[4,184*0.5]/4184 = 0.50 years
c.What is the leverage-adjustedduration gap? Is Angus State Bank exposed to interest rate risk? Is it exposed if interest rate increase or decrease?
Leverage-adjusted duration gap (DG) = -[DA – kDL]= = ___________ years
The duration gap is _______ years, indicates that an increase in interest rates will lead to an increaseor decrease in net worth. Circle the correct change in net worth
d. What is the forecasted impact on the market value of equity caused by a relative 1.5 percent upward shift in the entire yield curve? [i.e.,Dr/(1+r) = 0.0150]?
The market value of the equity will change by the following:
MVE = -DG * (A) * r/(1 + r) = ______ (_________)(0.015)= $______________.
e.What variables are available to the financial institution to immunize or at least reduce interest rate risk exposure on the balance sheet? Taking one variable at a time, how much would each variable need to change to get DGAP equal to 0?
To immunize the institution for interest rate risk, the Leverage Adjusted DG needs to be zero:
DG = DA–kDL= 0
The choice is to make the duration of assets equal to:
DA= (4184/4987.37)0.50=0.42 years
or the duration of liabilities equal to:
DL= _______________ = ____________ years
Or some combination thereof. Obviously, for any depository institution, this cannon occur, thus the next most cost effect way to reduce interest rate risk is using interest rate swaps.
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1 Write An Opengl Program That Renders A Cube With Six Faces Of Different Colors For 879692
/in Uncategorized /by developer1. Write an OpenGL program that renders a cube with six faces of different colors. Form the cube from six quadrilaterals, making sure that the front faces are facing outwards. If you already know how to perform rotations, let your program include the ability to spin the cube around.(Ref er to Chapter II and see the Wrap Torus program for code that does this.)
If you rendered the cube using triangles instead, how many triangles would be needed?
2. Repeat question 1. but render the cube using two quad strips, each containing three quadrilaterals.
3. Repeat question 1. but render the cube using two triangle fans.
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1 Write A Short Literature Review On The Disparities Faced By Rural And Remote Popul 2813076
/in Uncategorized /by developer1) Write a short literature reviewon the disparities faced by rural and remote populations in Australia. Identify some of the key health challenges and conditions that are faced by this population group (1000 words) (10 marks)
2) You are required to choose one rural or remoteregion in Western Australia from the list below and complete a needs assessment(population profile) for that region. (30 marks)
· Pilbara
Or
· South West
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Assessment 1: Needs Analysis (40%) There are two parts to this assessment: Write a short literature review on the disparities faced by rural and remote populations in Australia. Identify some of the key health challenges and conditions that are faced by this population group (1000 words) (10 marks) You are required to choose one rural or remote region in Western Australia from the list below and complete a needs assessment (population profile) for that region. (30 marks) Pilbara Or South West You are required to complete each section below. Where data and/or information is not available, suggest reasons as to why this may be. You must include in-text citations and include a reference list at the end of your assessment. Please ensure that you use the most up to date information, i.e. 2016 Census Data. Please make note of the mark allocation for each section of your needs assessment. This assessment is worth 40% of your overall mark. You may find the following resources useful for your population profile and needs assessment: •Health Services: HYPERLINK “https://www.healthmap.com.au” https://www.healthmap.com.au •Workforce: HYPERLINK “http://www.aihw.gov.au/workforce-data/” http://www.aihw.gov.au/workforce-data/ •Population Demographics: HYPERLINK “http://www.abs.gov.au” http://www.abs.gov.au HYPERLINK “http://profile.id.com.au” http://profile.id.com.au HYPERLINK “http://map.aurin.org.au” http://map.aurin.org.au HYPERLINK “http://graphc.aphcri.anu.edu.au” http://graphc.aphcri.anu.edu.au HYPERLINK “http://www.wacountry.health.wa.gov.au/index.php?id=961” http://www.wacountry.health.wa.gov.au/index.php?id=961 •Chronic Disease: Diabetes HYPERLINK “http://www.diabetesmap.com.au/” l “/” http://www.diabetesmap.com.au/#/ General HYPERLINK “http://www.aihw.gov.au” http://www.aihw.gov.au •Regional definition: HYPERLINK “http://www.doctorconnect.gov.au/internet/otd/publishing.nsf/Content/locator”…
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1 Write The Program To Construct The Optimal Binary Search Tree 2 Suppose We Ve Comp 2538356
/in Uncategorized /by developer1. Write the program to construct the optimal binary search tree.
2. Suppose we've computed the optimum binary search tree for some set of keys and frequencies, and say that one frequency is incremented by one. Write a program to compute the new optimum tree.
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1 Write The Single Instruction To Configure The Eicra Register So The Int1 Is Fallin 3300814
/in Uncategorized /by developer1. Write the single instruction to configure the EICRA register so the INT1 is falling edge triggered and INT0 is rising edge triggered.
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1 You Are A Member Of Human Resources And Are Working With A Committee To Complete Y 2300019
/in Uncategorized /by developer1. You are a member of human resources and are working with a committee to complete your company’s computer usage policy. What advice would you offer the committee regarding how to address online pornography? Would you suggest that the policy be laissez-faire, or would you recommend that it require strict enforcement of tough corporate guidelines? Why?
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1 You Are A New Small Business Owner Focused On Selling Healthy Pet Food Products In 3307499
/in Uncategorized /by developer1.You are a new small-business owner focused on selling healthy pet food/products in a small town. You are struggling to bring in new customers and develop a name for your store.
Address the following in 525 to 700 words:
o Identify several key business strategies that the business should consider.
o Compare the business strategies you selected and determine which would be the most useful for your current situation.
o Select examples of business strategies that could be utilized to bring in customers and develop a plan for improving the reputation of the business that will bring customers back.
o Determine the metrics that you will use to evaluate your selected business strategy for effectiveness.
Submityour scenario.
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1 You Are Asked To Determine The Market Value Mark To Market Balance Sheet For Angus 2843572
/in Uncategorized /by developer1. You are asked to determine the market value(mark-to-market) balance sheet for Angus State Bankand loan duration (amounts in $ thousands and duration in years):
Book Value Market Value
Assets Amount Amount Duration
T-bills $ 180 $ 180 0.50
Loans* 5,000 ______ _____
Total Assets 5,180 ______
Liabilities
Deposits 4,184 4,184 0.50
Total Liabilities 4,184 4,184
Equity 996 ______
Total Lia and NW 5,180 ______
*Since this is a simple bank, it has only one type of loan. The loan has a $5,000 book value (current outstanding principal), amortized loan with annual payments, an interest rate of 6.5 percent, and 20-years to maturity. Similar amortized loans today (market interest rate for similar loans) have an interest rate of 7 percent which, is the market yield.
a.Using Excel, determine the market value and duration of the loan and fill in the blanks in the balance sheet above. Please include a copy of your Excel Spreadsheet with your completed exam (you can copy and paste as a picture).
b. What is the average duration of all the assets and what is the average duration of all the liabilities?
Average Duration of Assets: = ______ years
Average Duration of Liabilities:[4,184*0.5]/4184 = 0.50 years
c.What is the leverage-adjustedduration gap? Is Angus State Bank exposed to interest rate risk? Is it exposed if interest rate increase or decrease?
Leverage-adjusted duration gap (DG) = -[DA – kDL]= = ___________ years
The duration gap is _______ years, indicates that an increase in interest rates will lead to an increaseor decrease in net worth. Circle the correct change in net worth
d. What is the forecasted impact on the market value of equity caused by a relative 1.5 percent upward shift in the entire yield curve? [i.e.,Dr/(1+r) = 0.0150]?
The market value of the equity will change by the following:
MVE = -DG * (A) * r/(1 + r) = ______ (_________)(0.015)= $______________.
e.What variables are available to the financial institution to immunize or at least reduce interest rate risk exposure on the balance sheet? Taking one variable at a time, how much would each variable need to change to get DGAP equal to 0?
To immunize the institution for interest rate risk, the Leverage Adjusted DG needs to be zero:
DG = DA–kDL= 0
The choice is to make the duration of assets equal to:
DA= (4184/4987.37)0.50=0.42 years
or the duration of liabilities equal to:
DL= _______________ = ____________ years
Or some combination thereof. Obviously, for any depository institution, this cannon occur, thus the next most cost effect way to reduce interest rate risk is using interest rate swaps.
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1 You Deposit 2 000 Into Your Checking Account At Abc Bank The Reserve Ratio Is 20 A 2700054
/in Uncategorized /by developer1. You deposit $2,000 into your checking account at ABC bank. The Reserve Ratio is 20%.
A) Make a T-account showing the deposit and the bank making a loan
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1 You Are The Cfo Of A Private College You Know That Each Student Attends School For 2830220
/in Uncategorized /by developer1. You are the CFO of a private college. You know that each student attends school for exactly 4 years. Education is expensive. It costs the school 20k per year per student to run the school, but tuition is only 19k. Effectively, you are losing 1k per student per year. You also know that alumni often give back to the school after graduation. Specifically, on average, students make a 10k donation to the school on their 20th anniversary of graduation. From strictly an NPV point of view, what is the total cash flow, total costs, discounted cash flows, NPV and IRR the school gets on EACH student. The schools discount rate is 6%. Is the school doing ok?
2. The school can either encourage graduates to give more. Specifically, they have an idea that will increase donations from alumni from 10k to 12k. How does this impact the NPV and ROI and the ROI? Is this a good plan?
3. Alternatively, the school can encourage alumni to give earlier. Rather than waiting 20 years, the school believes it can encourage alumni to make a 10k donation 10 years after graduation. How does this impact the key financial measures?
4. Which is the better plan? Ask to give more? Or ask to give earlier?
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1 You Deposit 2 000 Into Your Checking Account At Abc Bank The Reserve Ratio Is 20 A 2700056
/in Uncategorized /by developer1. You deposit $2,000 into your checking account at ABC bank. The Reserve Ratio is 20%.
A) Make a T-account showing the deposit and the bank making a loan
B) Using the money multiplier, how much will the money supply increase because of the $2,000 deposit?
2. If the money supply is growing at a rate of 6% per year, real GDP is growing at a rate of 3% per year and velocity is constant, what will the inflation rate be?
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You deposit $2,000 into your checking account at ABC bank. The Reserve Ratio is 20%. A) Make a T-account showing the deposit and the bank making a loan B) Using the money multiplier, how much will the money supply increase because of the $2,000 deposit? If the money supply is growing at a rate of 6% per year, real GDP is growing at a rate of 3% per year and velocity is constant, what will the inflation rate be?
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