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- Sample the MSFSB
Classroom Visit
So what do you learn in the MSFSB Program? Join us for a classroom visit and see for yourself. Classes are offered Monday – Thursday at 4:30pm - 7:10pm or 7:15pm - 9:55pm. Stay for part or all of the evening. Contact the Graduate Programs in Finance Office to make arrangements.
Sample Coursework
Not able to join us? We can't cover everything, but here is a sample question from Financial Institutions Management that gives you a taste of what we have to offer:
Financial Institutions Management
Use the following market-value balance sheet information to answer the following questions.
| Assets | Amount | Duration | Liab & Equity | Amount | Duration |
| Cash | $50 million | 0 | 1-year CD | $300 million | 1 year |
| C&I loans | $200 million | 1.25 years | 6-year CD | $150 million | 5 years |
| Mortgage loans | $250 million | 7 years | Equity | $50 million | |
| Total assets | $500 million | Total Liab & Equity | $500 million |
a. What is the institution's leverage-adjusted duration gap?
b. Now the interest rate is 8%. If next year the interest rate shift upward 20 basis points, what is the impact on the FI's market value of equity?
c. Suppose that the bank macrohedges using Treasury bond futures that are currently priced at 102. (One Treasury bond futures contract has face value $100,000). What is the impact on the value of one futures contract if interest rate increases by 0.2%, that is Dr/(1+r) » +0.002. Assume the Treasury bond has a duration of 6 years.
d. If the bank wants to put on a perfect macrohedge, how many Treasury bond futures contracts would be needed?
Answers (PDF)