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)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter7: Receivables And Investments

Section: Chapter Questions

Problem 7.11E

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