Question 3 (a) HSU Bank is a local bank with secured lending, commercial & consumer loans and the commercial letter of credit as the credit businesses, with internal risk weighting set as 30% and 100% respectively for the first two. For commercial letter of credit, which is the off-balance-sheet item with secured lending as the equivalent risk bucket, the comversion factor is 25% HSU Bank aims to maintain Common Equity Tier 1 ratio of 8.5%. Currently, the bank has $120m commercial \& consumer loans, $280m secured loan and 530m commercial letter of credit. Determine the total risk adjusted assets value and the amount of Common Equity Tier I cupital required. (b) Suppose HSU Bank aims to achieve the after-tax ROE of 18% for the Common Equity Tier 1 capital determined in part (a) above. The following table provides some other information and data fio the vield determination: Determine the yield for the risk adjusted assets by working on the above table in vour answer book (Show your calculation steps and show your answers up to 2 decimal places if applicable)