a bank has a commercial loan portfolio of $ 5 0 million dollars. based on historic trend
Fantastic news! We've Found the answer you've been seeking!
Question:
a bank has a commercial loan portfolio of $ million dollars. based on historic trend analysis it estimates that of outstanding principal is not paid back. the bank determines is the optimal interest rate to charge on consumer loans. Based on the optimal interest rate and the estimate for loan losses what will charge on its commercial loans to offset its expected loan losses? show your answer to four decimal places in a numeric format if answer is enter is
Expert Answer:
Answer rating: 100% (QA)
To calculate the interest rate that the bank should charge on its commercial loans to offse... View the full answer
Posted Date:
Students also viewed these finance questions
-
Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
-
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The probability that fewer than 35 people support theprivatization of Social Security A discrete random variable is given. Assume the probability of the random variable will be approximated using the...
-
What trade-offs are involved in each of these aspects of inventory management? a. Buying additional amounts to take advantage of quantity discounts. b. Conducting actual inventory counts once a...
-
Refrigerant-123, dichlorotrifluoroethane, which is currently under development as a potential replacement for environmentally hazardous refrigerants, undergoes an isothermal steady flow process in...
-
Osgood Company transfers out 12,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are entered at the beginning of the process and there is no beginning work in...
-
Retail Inventory Method Saurez Company, your client, manufactures paint. The companys president, Maria Saurez, has decided to open a retail store to sell Saurez paint as well as wallpaper and other...
-
A solid has, as its base, the circular region in the xy-plane bounded by the graph of x+2= 4. Find the volume of the solid if every cross section by a plane perpendicular to the x-axis is a quarter...
-
View Policies Current Attempt in Progress Cullumber Company produces and sells automobile batteries, the heavy-duty HD-240. The 2022 sales forecast is as follows. Quarter HD-240 1 4,200 2 5.880 3...
-
Research your state laws and regulations online and answer the following: 1. Has your state adopted any laws, rules/regulations, or any other kind of standards about "adverse events," "never events,"...
-
Starting from the short-term state of the economy obtained under 1, add now to the same AS- AD setting the effect of the increase in global commodity prices ensuing the war in Ukraine. How do the...
-
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.: Accounts Amount Accumulated Depreciation $32,000 Fees Earned...
-
Company has sales revenue of $130,000 for the year. The gross margin percentage for this year was 20%. Company had beginning inventory of $10,000 and had inventory purchasesduring the year of...
-
The sketch below shows the elevation of an eccentrically braced frame. You are required to check the adequacy bear outside the link at the 2nd floor and the brace at the first story due to combined...
-
Real Estate Closings involve many people. Each person at the closing has a financial interest. Discuss in two-hundred words or more ways to deal with the competing financial interests of key people...
-
A company pledges their receivables so they may Multiple Choice Charge a factoring fee. Increase sales. Recognize a sale. Collect a pledge fee. Borrow money. Failure by a promissory notes' maker to...
-
Assume that interest rate parity exists and it will continue to exist in the future. Kentucky Co. wants to forecast the value of the Japanese yen in 1 month. The Japanese interest rate is lower than...
-
Assume that interest rate parity exists. Today the 1-year U.S. interest rate is equal to 8 percent, while Mexicos 1-year interest rate is equal to 10 percent. Today the 2- year annualized U.S....
-
For all parts of this question, assume that interest rate parity exists, the prevailing 1-year U.S. nominal interest rate is low, and that you expect U.S. inflation to be low this year. a. Assume...
Study smarter with the SolutionInn App