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Brendon Brothers Bank Reports Interest-Sensitive Assets at $35 Million,interest-Sensitive Liabilities

question 41

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Brendon Brothers Bank reports interest-sensitive assets at $35 million,interest-sensitive liabilities at $60 million and total assets at $80 million.What is the relative IS GAP of the bank?

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Definitions:

Principal

The initial amount of money borrowed or invested, excluding any interest or dividends.

Installments

Regular, often monthly, payments made towards settling a debt or purchasing a product over time.

Callable Bond

A type of bond that gives the issuer the right to repay the bond before its maturity date, usually at a specified call price.

Redeem

The act of exchanging something, such as a coupon or financial securities, for a specific value or service.

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