Bank B, on the other hand, makes a $105 loan at 7%, with $100 in deposits at 5% and only $10 in equity. Bank B purchases the rest of Assets as G-Bond at 5% interest rate. Bank B Loan 7% $105 G-Bond 5% ? Deposits 5% $100 Equity $10 Total Assets $? Total Equity and Deposit $110 compute NIM of Bank B= 19% 5% 25% 17% 32% 26% 18% 34.2%
Bank B, on the other hand, makes a $105 loan at 7%, with $100 in deposits at 5% and only $10 in equity. Bank B purchases the rest of Assets as G-Bond at 5% interest rate. Bank B Loan 7% $105 G-Bond 5% ? Deposits 5% $100 Equity $10 Total Assets $? Total Equity and Deposit $110 compute NIM of Bank B= 19% 5% 25% 17% 32% 26% 18% 34.2%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
- Bank B, on the other hand, makes a $105 loan at 7%, with $100 in deposits at 5% and only $10 in equity. Bank B purchases the rest of Assets as G-Bond at 5% interest rate.
|
Bank B |
|
|
Loan 7% $105 G-Bond 5% ? |
Deposits 5% $100 Equity $10 |
|
Total Assets $? |
Total Equity and Deposit $110 |
compute NIM of Bank B=
|
19% |
||
|
5% |
||
|
25% |
||
|
17% |
||
|
32% |
||
|
26% |
||
|
18% |
||
|
34.2% |
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