You need $24,056 at the end of 6 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). with the certificate of deposit, you make an initial investment at the beginning of the first year. use appendix b and appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a.

what single payment could be made at the beginning of the first year to achieve this objective? (do not round intermediate calculations. round your final answer to 2 decimal places.)

single payment made $

b.

what amount could you pay at the end of each year annually for 6 years to achieve this same objective? (do not round intermediate calculations. round your final answer to 2 decimal places.)

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.