Consider the following balance sheetExpected Balance Sheet for XYZ BankAssetsYieldLiabilitiesCostRate sensitive $1300 8%%$417008%Fixed rate$500 9%$15005%Non earning$ 5100$.1800Equity1900Total$ 6900$6900What is the Net Interest Margin (NIM)

Net interest margin- It is a measure of the interest income generated by the financial institutions…

Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% 1700 8% Fixed rate %24 $ 500 9% $ 1500 5% Non earning 2$ $ 5100 %24 1800 Equity 1900 Total $ 6900 $ 6900 What is the Net Interest Margin (NIM)

Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% 1700 8% Fixed rate %24 $ 500 9% $ 1500 5% Non earning 2$ $ 5100 %24 1800 Equity 1900 Total $ 6900 $ 6900 What is the Net Interest Margin (NIM)

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

Consider the following balance sheet
Expected Balance Sheet for XYZ Bank
Assets
Yield
Liabilities
Cost
Rate sensitive $
1300 8%
%$4
1700
8%
Fixed rate
$500 9%
$1500
5%
Non earning
$ 5100
$.
1800
Equity
1900
Total
$ 6900
$6900
What is the Net Interest Margin (NIM)

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