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Determine the initial consideration amount

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Q1. The Bank had interest income of $85 million and non-interest income of $10 million. This bank also had interest expenses of $30 million and non-interest expenses of $25 million. This bank's provision for loan losses is $5 million and taxes are $5 million. This bank has total assets of $1 billion and has equity capital totaling 15 per cent of total assets.

A) What is this bank's net interest margin (use total assets as earning assets)?

B) What is this bank's return on assets?

C) What is this bank's return on equity?

Q2. An investor buys a Treasury Bill. If the nominal value is $1 million, the current discount rate is 10% and the remaining tenor is 50 days. Determine the initial consideration amount needed to invest in the bill?

Reference no: EM132607361

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