Use the following information about Bank Z:

Assets

Cash

Bonds

Commercial Loans

Amount

Rate

100.000 ?

200.000 6.5%

200.000 8.0%

Macaulay's Duration

(years)

?

3.0

9.0

ings

Liabilities & Equity

Amount

Rate

Small time deposits

50,000

1.0%

Large CDs

100.000 5.0%

Transaction accounts

300,000 3.5%

Equity

50,000

What is the bank's net interest income?

Macaulay's Duration

(years)

1.0

2.0

3.0

what is the banks net interest income?

Use the following information about Bank Z: Assets Amount Rate Macaulay's Duration (years) Cash 100,000 ? ? Bonds 200,000 6.5% 3.0 Commercial Loans 200,000 8.0% 9.0 Liabilities & Equity Amount Rate Macaulay's Duration (years) Small time deposits 1.0 Large CDs 50,000 1.0% 100,000 5.0% 300,000 3.5% 2.0 Transaction accounts 3.0 Equity 50,000 What is the bank's net interest income? 15,000 O 12,500 O 50,000 O 13,000