Birch Bank issued a loan today $($day $0).$ Below are the characteristics of the loan. Equal principal repayments are semi$-$annual, i$.$e$.50\%$ of the principal is due after $6$ months, and the remaining $50\%$ is due at year $1.$

Loan amount $($th $$)$

Loan term $($years$)$

Principal Payment frequency

Interest rate $($pa$.)$

$5,000$

$1$

Semi$-$annual

$6\%$

The asset is financed with a certificate of deposit paying $6\%$ per year. Current benchmark interest rates are $3\%.$ We also know that the combined one$-$year net income on these loans is $1$ cent per dollar lent.

Birch has $$20$ million in total assets, and $$5$ million in equity.