Use for the next six questions. Florida Commercial Bank (FCB…
Use for the next six questions. Florida Commercial Bank (FCB) has assets of $600 million, liabilities of $525 million, and equity of $75 million. The average duration of its asset portfolio is 10 years and that for the portfolio of liabilities is 6 years. Market interest rates are 8%. FCB wishes to hedge its balance sheet with Treasury bond futures contracts. The futures contracts are currently quoted at 97-13 and have $100,000 face value. The benchmark long-term bond underlying the futures contract has a 7% coupon rate, a market yield of 7.25%, and a duration of 10.93 years. FCB has a leverage-adjusted duration gap of ___________years and needs to _____________ futures contracts in order to hedge.
Read DetailsSuppose the input is 2 3 4 5 0. What is the output of the fo…
Suppose the input is 2 3 4 5 0. What is the output of the following code? import java.util.Scanner; public class Test { public static void main(String[] args) { Scanner input = new Scanner(System.in); int number, max; number = input.nextInt(); max = number; while (number != 0) { number = input.nextInt(); if (number > max) max = number; } System.out.println(“max is ” + max); System.out.println(“number ” + number); }}
Read DetailsAnalyze the following code.public class Test { public stati…
Analyze the following code.public class Test { public static void main(String[] args) { System.out.println(max(1, 2)); } public static double max(int num1, double num2) { System.out.println(“max(int, double) is invoked”); if (num1 > num2) return num1; else return num2; } public static double max(double num1, int num2) { System.out.println(“max(double, int) is invoked”); if (num1 > num2) return num1; else return num2; }}
Read Details