Simulation of a CD Portfolio
Published Online:1 Jun 1986https://doi.org/10.1287/inte.16.3.49
Abstract
A bank needs to effectively manage the spread between the interest it pays out on CDs and the interest it earns on loans. A simulation model developed to assess the impact of future interest rate scenarios is useful in managing the corporate CD portfolio yield of the First National Bank and Trust Company of Tulsa, Oklahoma.
