Question
A bank has the following asset portfolio. i. 100mnGovernment Bonds with 0 risk ii.50mnCorporate Bonds with 50% risk iii. 25mnJunk bonds with 100% risk a.
- A bank has the following asset portfolio.
i. 100mnGovernment Bonds with 0 risk
ii.50mnCorporate Bonds with 50% risk
iii. 25mnJunk bonds with 100% risk
a. What is the value of risk weighted assets?
b. How much should be the minimum capital for the Bank to be adequately capitalized?
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Practical Financial Management
Authors: William R. Lasher
8th edition
1305637542, 978-1305887237, 1305887239, 978-1305637542
