National Australia Bank earns 5% pa on $4 billion of interest-earning assets. The total creditor's obligation is$2.5

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National Australia Bank earns 5% pa on $4 billion of interest-earning assets. The total creditor's obligation is$2.5 billion, which has an average cost of 2%

If the bank has total assets of $5 billion, what is its InterestRate Margin?

Related Book For answer-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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Posted Date: Apr 03, 2023 03:07 AM

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National Australia Bank earns 5% pa on $4 billion of interest-earning assets. The total creditor's obligation is$2.5

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ANSWER AND EXPLANATION The Interest Rate Margin is the difference between the interest income ea... View the full answer

Cost management a strategic approach

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