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1. Below are two different financial situations, find the answers and show your calculations: A. Star Bank has an interest expense of $200 million and

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1. Below are two different financial situations, find the answers and show your calculations: A. Star Bank has an interest expense of $200 million and interest income of $400 million. Star Bank has interest-bearing liabilities of $1,600 million and earning assets of $2,600 million. What is the spread of Star Bank? Show your calculations. B! An investor starts with $1 million and converts it to 0.75 million pounds, which is then invested for one year. In a year the investor has 0.7795 million pounds, which she then converts to dollars at an exchange rate of 0.72 pounds per dollar. Calculate the U.S. dollar annual rate of return the investor earns. Show your calculations

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