You are given the following balance sheet values of a hypothetical bank (OUR Bank) at t=0. The bank uses a hurdle rate (cost of capital) of 9.877% per annum, continuously compounded for computing the future and present values for the cash flows of its loans, which we also call it the market interest (borrowing and lending) rate. Balance sheet as on t=0 (Now)

	Amount	Liabilities/Equity	Amount
One-year commercial loan of $1,000 to be repaid in four equal quarterly installments; the interest payment is on the outstanding balance at an annual rate of 10% per annum.	$1,000	One-year Certificate of Deposit at 10% per annum simple interest; balloon payment of principal	$1,000
		Equity	$0
Total	$1,000	Total	$1,000

What will be the net interest income or net cash flow or equity at the end of year 1 (end of quarter 4) if the market interest rate for OUR Bank remains at 9.877% per annum, continuously compounded throughout this one-year? In other words, all the the intermittent cash flows from the loan are reinvested at the reinvestment rate equal to 9.877% per annum, continuously compounded.

[Note: Round off to at least four decimal places. For example, if your answer is $1.234567, then type 1.2346. If your answer is $(1.234567), meaning loss of 1.234567, then type -1.2346.]