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The data for AlphaDog bank is as follows: r(loans) = 0.12 r(securities) = 0.1 Interest expense = 15,000 Loans = 100,000 Securities = 75,000 Net

The data for AlphaDog bank is as follows: r(loans) = 0.12 r(securities) = 0.1 Interest expense = 15,000 Loans = 100,000 Securities = 75,000 Net Non-interest income = 3,000 NI = 7,500 Assume T and PLL are zero. If target NI = $10,000, what must the bank get the average loan rate (ALR), currently at 12%, up to? 0.130 0.155 0.175 0.145 0.215Liab/Equity int. rate Securities 500 4.00% Liabilities 1125 3.50% Loans 750 8.50% Equity 125 Total 1250 1250

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