NewBank started its first day of operations with $6milion in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms:

• Mortgage: 100 standard 30-year fixed-rate mortgages with a nominal annual rate of 5.25% each for $250,000
• Commercial loan: 3-year loan, simple interest paid monthly at 0.75% per month

1..1 Newbank decides to invest $45 million in 30-day T-bills. The T-bills are currently trading at $4986.70 (including commissions) for a $5,000 face value instrument. How many do they purchase? What does the balance sheet look like?

1.2. Calculate new Bankss ROE and final balance sheet, including its tax liabilities