The FIN343 State Bank has $1000 in total assets (all of which are earning assets), $700 of
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The FIN343 State Bank has $1000 in total assets (all of which are earning assets), $700 of which will be repriced within the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days. Currently, the bank is earning 8% on its assets and is paying 5% on its liabilities. If interest rates on both assets and liabilities rise by 2% in the next 90 days, what would this bank's net interest margin be?
A. | 4% |
B. | 4.4% |
C. | 4.6% |
D. | 2.4% |
E. | 6% |
Related Book For
Integrated Accounting
ISBN: 978-1285462721
8th edition
Authors: Dale A. Klooster, Warren Allen, Glenn Owen
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