PART A The book value of DRAGON SLAYER BANK's balance sheet is listed below. The current market yield for the securities is in parentheses. The amounts are in millions. Asset Cash 6 month T-bills (4.25%) 2 year personal fixed rate loan at 6.50% 3 year T bills (4.85%) 3 year 5.5% semi-annual coupon T-notes (5.25%) 5 year 6.2% semi-annual coupon T-notes (5.75%) 5 year personal loan (1 1.5%, repriced yearly) 5 year bond 8.0% annual coupon issued by Spanish government with rating credit rating B 10 year commercial loan (12.25% repriced @ 6 months) 15-year commercial loan at 10% interest (repriced monthly) 20-year sovereign bonds 12.0% annual-coupon issued by Cambodian government with BB rating 20-year mortgages at 8.5% interest (LVR 65%, no mortgage insurance), balloon paymentA Total Assets 0013 55 50 100 100 90 100 350 150 730 220 150 390 2485 Liability & Equity Demand deposits Savings accounts (2.0%) 3 month CD (2.50%) 9 months CDs (3.85%) 1 year term deposit (4.0%) 2 year term deposits (4.30%) 5-year bonds at 6.75% semiannual interest, balloon payment 20-year bonds at 7.5% interest, balloon payment Subordinate notes: 3-year fixed rate (5.65%) 6-year fixed rate (6.00%) Ordinary Equity Preference shares Retained Earnings Total liability and equity Assignment 2 2016 300 205 150 150 520 200 250 250 230 150 20 20 40 2485 Page 2