Question
(1). NAB earns 4% on $2 billion of interest earning assets and pays 3% on $1.5 billion of interest liabilities. With total capital of $4
(1). NAB earns 4% on $2 billion of interest earning assets and pays 3% on $1.5 billion of interest liabilities. With total capital of $4 billion. Calculate NAB's Interest Rate Margin.
Select one:
a. Not enough information provided
b. 0.68%
c. 1.08%
d. None of the answers here.
e. 0.88%
(2). Given that government 5-year bonds have a current yield to maturity of 3.5%, with no other consideration, which of the following investments should you invest in? Select all correct answers only. Assume all percentages given in this question are per annum.
Select one or more:
a. Property lease returning 4%.
b. Telstra shares paying a dividend yield of 3%.
c. I would invest in all investments here.
d. NAB bond which has a coupon of 3.5%.
e. Bank term deposit earning 2%.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started