You are provided with the following information on the assets and liabilities of a bank, and their
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Question:
You are provided with the following information on the assets and liabilities of a bank, and their associated yields and costs respectively.
Assets (R) | Yield (%) | Liabilities (R) | Cost (%) | |
Rate sensitive | 800 | 10% | 1 000 | 5% |
Fixed rate | 400 | 8% | 200 | 4% |
Non-earning/paying | 200 | - | 100 | - |
Total | 1400 | 1300 | ||
Calculate the net interest income (NII) of the bank.
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