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The Pez Bank started it's first day of operations with $6 million in Capita. $100 million in checkable deposits is received. The bank issues a
The Pez Bank started it's first day of operations with $6 million in Capita. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages with the following terms. a. mortgages: 100 standards 30-year fixed rate mortgages with a nominal annual rate of 5.25% each for $250,000. b. Commercial loan: 3-year loan, simple interest paid monthly at 0.75% per month. If required reserves are 8%, what do the bank balance sheets look like? Ignore any loan loss reserves.
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