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QUESTION 26 A financial institution has the following market value balance sheet structure: Assets Liabilities and Equity Certificate of deposit Cash Bond $ 1,800 10,200

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QUESTION 26 A financial institution has the following market value balance sheet structure: Assets Liabilities and Equity Certificate of deposit Cash Bond $ 1,800 10,200 $ 12,000 Equity Total liabilities and equity $ 10,800 1,200 $ 12,000 Total assets The bond has a 10-year maturity, a fixed-rate coupon of 11 percent paid at the end of each year, and a par value of $10,200. The certificate of deposit has a 1-year maturity and a 6 percent fixed rate of interest. The Fl expects no additional asset growth. What will be the net interest income (NII) at the end of the first year

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