The T-account below shows the balance sheet of Santander. Assets Reserves Loans Securities $200 million Liabilities $10 million Deposits $400 million Borrowings from $500 million other banks $20 million Borrowings from the Fed Bank capital $50 million $40 million The assets of Santander heve an average duration of 8 years. The liabilities of Santander have an average duration of 3 years. Based on the balance sheet above, if interest rate decreases by 5.2%, what is the change in net worth (in millions of $) of the bank? Round your answer to at least 2 decimal places. An increase in net worth should be entered as a positive number and a decrease in net worth should be entered as a negative number. (Eg. A decrease of $12,345,678 in net worth should be entered as -12.35)
The T-account below shows the balance sheet of Santander. Assets Reserves Loans Securities $200 million Liabilities $10 million Deposits $400 million Borrowings from $500 million other banks $20 million Borrowings from the Fed Bank capital $50 million $40 million The assets of Santander heve an average duration of 8 years. The liabilities of Santander have an average duration of 3 years. Based on the balance sheet above, if interest rate decreases by 5.2%, what is the change in net worth (in millions of $) of the bank? Round your answer to at least 2 decimal places. An increase in net worth should be entered as a positive number and a decrease in net worth should be entered as a negative number. (Eg. A decrease of $12,345,678 in net worth should be entered as -12.35)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The T-account below shows the balance sheet of Santander.
Assets
Liabilities
$10 million Deposits
$400 million Borrowings from
Reserves
$500 million
Loans
other banks
Borrowings from
the Fed
Bank capital
Securities $200 million
$20 million
$50 million
$40 million
The assets of Santander have an average duration of 8 years. The liabilities of Santander have an average duration of 3 years.
Based on the balance sheet above, if interest rate decreases by 5.2%, what is the change in net worth (in millions of $) of the bank? Round your answer to at least 2 decimal places. An increase in net worth should be entered as a
positive number and a decrease in net worth should be entered as a negative number. (Eg. A decrease of $12,345,678 in net worth should be entered as -12.35)
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