A bank has interest expense of $150 million, earning assets of $1.4 billion, and a net interest margin of 5.0%. The bank also has interest-bearing liabilities of $1.1 billion. The bank's spread ratio must be O 1.94% O 1.10% O 2.08% O 1.65%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A bank has interest expense of $150 million, earning assets of $1.4 billion, and a net interest margin
of 5.0%. The bank also has interest-bearing liabilities of $1.1 billion. The bank's spread ratio must be
O 1.94%
1.10%
2.08%
1.65%
Transcribed Image Text:A bank has interest expense of $150 million, earning assets of $1.4 billion, and a net interest margin of 5.0%. The bank also has interest-bearing liabilities of $1.1 billion. The bank's spread ratio must be O 1.94% 1.10% 2.08% 1.65%
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