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-What Is the Repricing Gap Over the 1-Year Maturity Bucket

Question 68

Multiple Choice

 Assets  Par Amount  Rate  Liabilities  Par Amount  Rate  2-year commercial loans $600 million 10% 1-year CDs $900 million 7% 1-year Treasury bills $400 million  Net Worth $100 million \begin{array} { | l | l | l | l | l | l | } \hline \text { Assets } & \text { Par Amount } & \text { Rate } & \text { Liabilities } & \text { Par Amount } & \text { Rate } \\\hline \text { 2-year commercial loans } & \$ 600 \text { million } & 10 \% & \text { 1-year CDs } & \$ 900 \text { million } & 7 \% \\\hline \text { 1-year Treasury bills } & \$ 400 \text { million } & & \text { Net Worth } & \$ 100 \text { million } & \\\hline\end{array}
-What is the repricing gap over the 1-year maturity bucket?


A) +$100 million.
B) -$500 million.
C) -$100 million.
D) +$500 million.
E) -$900 million.

Correct Answer:

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