OhBank Bank is a small Australian bank that specialises in providing home loans to citizens in regional population centers. The relevant domestic regulator has published the following table of risk weights of different residential mortgage types for the purpose of assessing whether a bank's capital adequacy requirements have been met. RISK WEIGHTS FOR STANDARD ELIGIBLE MORTGAGES LVR (%) N0 LMI At least 40% insured with LMI _ 80-01-90 90.01-100 >100.01 100% "LMI" = Lenders Mortgage Insurance You have the following formation about some home loans that OhBank Bank issued yesterday: 0 A loan of $510,000 to Mr Singh, a young bachelor who purchased an apartment in Wollongong for $600,000. Mr Singh took out lenders mortgage insurance ("LMI") on the full value of the property. . A loan to Mr & Mrs Huang for buying a 6bedroom house in Coffs Harbour at a purchase price of $3.7 million. They chose not to take out LMI, despite repeated suggestions from their loan officer. After much saving, they were able to put down a deposit of $0.185 million toward the purchase price. For the purpose of working out OhBank's capital adequacy requirements, what is the risk weighted asset value of these 2 mortgages? Eamdaank has attracted a new client: Dodgy Aeronautical Fusion Corporation. Eamadaank has provided Dodgy A.F. Corp with both: . A 5-year term loan in the amount of $12 million . A performance-related guarantee in the amount of $321 million You know that performance-related guarantees have a credit-conversion factor of 50%. Goody's, a credit rating agency, has assigned a Dodgy A.F. Corp a rating of "B", which places them in External Credit Rating Grade 5. 'ou have the following extract from the regulator's guide to risk weightings: EXTERNAL CREDIT RATING GRADE 1 2 3 4 5 Commonwealth government of Australia 0% State governments & Territories 100% 100% 150% COU NTERPARTY Commercial banks (3mth maturity) 100% 100% 150% porporations 100% 100% 150% 150% Assuming Basel l|l requirements, what is the minimum CET1 capital amount (in $millions) required for PM to support their total exposure to Dodgy A.F. Corp