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United Airlines is in the travel industry. The firm has a previously-issued bond with YTM 15%. if the Bank sold US Treasury notes (0% Risk

  1. United Airlines is in the travel industry. The firm has a previously-issued bond with YTM 15%. if the Bank sold US Treasury notes (0% Risk Weight Asset) yielding 0.35% and invested in the security (100% Risk Weight Asset), indicate how and why it should impact: 1) interest income, 2) both the allowance for loan & lease losses and the provision for loan losses and 3) both the Tier 1 Leverage Capital Ratio and the Tier 1 Leverage Risk-based capital ratio using the standardized approach?

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