Please see the attached exam and answer all five questions with detailed information.

BUS4078 Midcourse Exam (Units 1-5) 1. Capital State Bank reports total interest revenue of $86.42 million, total interest expense of $58.62 million, provision for loan losses of $3.6 million, total non-interest revenue of $15.61 million, total non-interest expense of $28.60 million, and an income tax rate of 30%. Total assets are $842.16 million. Given this information: What is Capital State Bank's net interest income? What is its net interest margin? What is the return on assets? What is the asset utilization? What is the profit margin? Answer Interest revenue Interest expense Net interest income Provision for loan losses Net interest income after provision for loan losses + Noninterest revenue = Noninterest expense = Net profit before tax = Net profit after tax Net interest income Net interest margin Return on assets Asset utilization Profit margin = = = = = = = = = = = = = = 2. Capital National Bank's stock paid a cash dividend of $2.42 per share last year. The stock price changed from $52 per share at the start of the year to $62 per share at the end of the year. What was the bank's rate of return? Answer 3. XYZ bank recently purchased at par a $1,000,000 issue of United States Treasury bonds. The bonds have duration of 3 years and pay 6% annual interest. How much would the bond's price change if interest rates were to fall from 6% to 5%? How much would the bond's price change if interest rates were to rise from 6% to 7%? What would your answer be if the duration of the bond was 6 years? Answer 4. Corporation XYZ obtains a ceiling agreement from a bank for a 5-year loan of $20 million at a rate of 7% (tied to LIBOR). An upfront fee of 2% is paid by XYZ for the guarantee that rates will not exceed 10%. Calculate the quarterly compensation the bank must pay XYZ If LIBOR goes to 12%. What kind of option is this for the bank? What kind of option is this for XYZ? When is it profitable? Answer 5. A municipal bond selling at par has a yield-to-maturity equal to 10%. A bank investment manager wishes to calculate its tax equivalent yield. Assume that it is a qualified bond, the bank's tax rate is 34%, and the average cost of funds for the bank is 8%. What is the answer if the bond is not qualified