Sue, an FNBK 3650 student at UNO, has leamed so much in this class she has...

   

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Sue, an FNBK 3650 student at UNO, has leamed so much in this class she has decided to open her own bank. With $100,000 of her own cash to start with, she opens her bank On day one, a customer walks in and wants to deposit $1,000,000 into a CD. The customer chooses a 1 year CD at a 1.00% rate. Later that day, with no other customers to make any deposits or ask for loans, Sue decides she better invest the $1,000,000 into the bond market in order to start making money. She looks the various bond terms and rates available and decides to purchase a $1,000,000 5 year bond yielding 2.00%. How much in annual net interest income will this transaction generate? Sue, an FNBK 3650 student at UNO, has leamed so much in this class she has decided to open her own bank. With $100,000 of her own cash to start with, she opens her bank On day one, a customer walks in and wants to deposit $1,000,000 into a CD. The customer chooses a 1 year CD at a 1.00% rate. Later that day, with no other customers to make any deposits or ask for loans, Sue decides she better invest the $1,000,000 into the bond market in order to start making money. She looks the various bond terms and rates available and decides to purchase a $1,000,000 5 year bond yielding 2.00%. How much in annual net interest income will this transaction generate?