11. Suppose that a bank has equity of $50, interest expense of $15, PLL = $6, and net noninterest income of -$4 (all numbers in millions). Corporate tax rate = 40%. What is the minimum total interest income required to generate an ROE of 20%? A. $170.45 B. $45 C. $36.55 D. $41.67 E. $28.85 12. If securities are $100 and are earning an average rate of return at 4%, and the bank has $500 in loans, what must be the average loan rate to generate the interest income calculated previously? A. 7.53% B. 9.70% C. 8.35% D. 9.12% E. 10.20%

PLEASE SHOW BY HAND CALCULATIONS, NOT BY EXCEL!