A bank originates a 30 year Fully Amortizing FRM at an annual interest rate of 5% with monthly compounding and monthly payments. If 10 years later, the bank borrows at 6%, what is this bank's Net Interest Margin (NIM) on this FRM? OA. 5.00% O B. -11.00% OC.-1.00% OD. 6.00%
A bank originates a 30 year Fully Amortizing FRM at an annual interest rate of 5% with monthly compounding and monthly payments. If 10 years later, the bank borrows at 6%, what is this bank's Net Interest Margin (NIM) on this FRM? OA. 5.00% O B. -11.00% OC.-1.00% OD. 6.00%
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 5PROB
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