Help needed ASAP!
Hello, I need some help understanding this question: Draw the cashflow ladder for CBC's interest rate sensitive assets and liabilities. You should use the following time buckets; Time 0 for Call or overnight exposures and then six-monthly buckets up to 4 years (e.g. 6 months, 12 months, 18 months etc.).
I do not understand what the asset data means by "daily rate reset" and "6 month rate reset" with regards to determining incoming or outgoing cashflows.
Additionally, could someone explain the significance (if any) of the specification that the 6month liability is "180 days" ?