Consider the following income statement for WatchoverU Savings Inc. (in millions): (LG 19-1) Assets Liabilities Floating-rate NOW
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Consider the following income statement for WatchoverU Savings Inc. (in millions): (LG 19-1) Assets Liabilities Floating-rate NOW accounts mortgages (currently (currently 6% annually) $.70 10% annually) $ 50 30-year fixed-rate Time deposits loans (currently 7% annually) 50 (currently 6% annually) Equity Total $100 20 10 $100
a. What is WatchoverU's expected net interest income at year-end?
b. What will be the net interest income at year-end if inter- est rates rise by 2 percent?
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Related Book For 
Financial Markets And Institutions
ISBN: 9780078034664
5th Edition
Authors: Anthony Saunders, Marcia Cornett
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