bank is earning 6% on its $150 million in earning assets and is paying 4.75% on its liabilities. The bank's Net Interest Margin is __________________.    A. 6.00%   B. 10.75%   C. 4.75%   D. 1.25%

Q: Assuming a 360-day year, proceeds of $47,000 were received from discounting a $47,910, 90-day note…

A: Discount rate is used to calculate the interest between proceeds and Received from Discounting

Q: Bank B, on the other hand, makes a $105 loan at 7%, with $100 in deposits at 5% and only $10 in…

A: Bank purchase G bond 5% worth $ 5 Total return earn by bank $105×7% + 5% ×5 7.35+0.25 7.60 Bank pay…

Q: Bank of Charub ($ million) Assets: Liabilities and Net Worth: 270 day US Treasury bills $500m 1 year…

A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…

Q: Assuming a 360-day year, proceeds of $48,750 were received from discounting a $50,000, 90-day note…

A: Total Amount Receivable from debtors = $ 50000 Total Amount paid by bank on bank note = $ 48750…

Q: What is the interest expense ratio for ACME bank?

A: An interest expense ratio is the ratio which is used by the banks or any businesses through which…

Q: Assets- reserves: 75000 loans : 430000 liabilities : deposites : 500000 net worth : 5000 a)…

A:

Q: Assuming a 360-day year, the interest charged by the bank, at the rate of 7%, on a 90-day,…

A: Notes payable is a financial instrument used to raise funds for financial obligations. Interest is…

Q: You invest 185 000 TL to a bank deposit account at gross rate of %24.5 for 65 days. If the…

A:

Q: A bank bill with a face value of $200,000 was issued today and it matures in 90 days' time.  If…

A: A banknote is a revocable promissory note that can be used to pay another person a certain amount of…

Q: 4. - 5 Bren provided the following selected information Cash in bank, net of bank overdraft of…

A: Current liabilities are obligations that are expected to be settled within one year or within the…

Q: Assets Value Duration of the Asset Convexity of the Asset 5yr bond bought at a yield of 3.4% $550M…

A: The question is based on the concept of calculation of equity to asset ratio and duration…

Q: Eagle Bank has the following interest-sensitive assets and interest-sensitive liabilities. Amount…

A: Interest rate refers to the rate that is earned on investments or charged on liabilities.…

Q: Bank B, on the other hand, makes a $105 loan at 7%, with $100 in deposits at 5% and only $10 in…

A: Note:  Balance of G bonds = Total equity and deposits - Loan Balance of G bonds = $110 - $105…

Q: Continental Bank holds assets and liabilities as follows: Assets Amount (million) Duration…

A: 1. To calculate the Value of Asset changed due to Change in interest   Change in Asset = Asset…

Q: 2. Account Receivable and Factoring Finance In order to resolve its cash flow problems, PT. Terang…

A:

Q: Bank A receives $70 in deposits at 5% and, together with 40 in equity, makes a loan of $90 at 7%.…

A: G-bonds are $20 as calculated below: Interest received from a loan of $70 is 7%*$90 = $6.3 Interest…

Q: A credit card company charges 23.0% interest per year, compounded monthly. What effective annual…

A: The effective annual rate refers to the rate of return provided by the investment over a year…

Q: Consider a bank with the following balance sheet (M means million): Assets Value Duration of the…

A: c) Computation of the net worth of the bank and equity to asset ratio using the duration and…

Q: A bank has earning assets of $100 million including $30 million of securities that pay an interest…

A: Net Interest Margin= (Interest Received - Interest Paid) / Average Invested Assets

Q: Carey Company is borrowing $250,000 for one year at 10.0 percent from Second Intrastate Bank. The…

A: As per the given information:

Q: A bank which starts with ALL of $1.48 million at the beginning the year, charges off worthless loans…

A: ALL at beginning of year = $1.48 millionCharging off worthless loans =$0.94 millionRecovery = $0.12…

Q: Your company is borrowing $5,800,000 in the form of notes payable from a bank. The bank is…

A: Net Yield = Interest rate * ( 1 - Tax Rate ) Interest rate is the rate charged by bank.

Q: 4. What is the duration of the 2 year consumer loans if they yield 6% p.a. with a coupon rate of 12%…

A: Duration of loan is weighted average no. of times fixed cash flows associated with loan will be…

Q: Assets Cash Loans T-Bond Total O $17.71 O $22.88 What is the bank's interest expense? O$34.12 $150…

A: Banks are very important in the modern economy and bank collect money where there is excess money…

Q: What is the duration of the floating rate mortgages?

A: A floating interest rate is an interest rate that moves up and down with the market or an index. It…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.