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Use the following information to answer question 3: First Bank has the following balance sheet in millions of dollars with the Basel II risk weights
Use the following information to answer question 3: First Bank has the following balance sheet in millions of dollars with the Basel II risk weights given in parentheses: Table 1: Assets Amount Liabilities Amount U.S. Govt T-Bonds (0%) $150 Deposits $1,420 Municipal Bonds (20%) $250 Subordinated Debt (Tier II) $20 High Yield Corporate bonds (50%) $350 Preferred Stock (Tier II) $25 Consumer Loans AAA-rated (20%) $450 Commercial Loans BBB-rated (100%) $300 Equity (Tier I) $35 Total $1,500 Total $1,500 Question 3: Based on the information from table 1 calculate the amount of capital the bank will need to cover Basel II standards. Round down to the nears whole number and show in the $xx format. Does the bank have enough capital to meet Basel II standards? Input either "Yes" or "No" in the "fill in the blank" box
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