![[i] Compute the interest received, interest expense, and net interest revenue in period 1.](http://img.homeworklib.com/questions/39ed17e0-6f6f-11ea-8e0f-bf03cbb9c6b8.png?x-oss-process=image/resize,w_560)
Homework Answers
Answer:
Interest received in Period 1 = securities * Interest rate + ST loans * Interest rate + LT loans * Interest rate
= 45 * 4.5% +15 * 5.5% + 35 * 9.5%
= £6.175 million
Interest expense in Period 1 = Deposits * Interest rate + LT borrowing * Interest rate = 75 * 3.5% +15 * 4% = £3.225 million
Net Interest revenue in Period 1 = 6.175 - 3.225 = £2.95 million
Hence:
Period 1
Interest received = £6.175 million
Interest expense = £3.225 million
Net Interest revenue = £2.95 million
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When calculate Interest paying asset,row 19,20,22,23?
To
calculate bank spread, what data is needed
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