True/False Questions
1. Larger banks are more likely to accept riskier loans than smaller banks.
Answer: True Page: 547-548 Level: Easy
2. Non-performing loans are loans that are past due 60 days that are not accruing interest.
Answer: False Page: 547-548

Would you have made the same decisions about the loan(s) you approved now that you see how they
have performed over six months? Explain.
I choose Abby Davis because she asked for a loan amount of $210,000 with a FICO score of 730. She had
zero late paymen

Problem21(LG26)
-2-2
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A particular securitys equilibrium rate of return is 8 percent. For all securities, the inflation risk premium is 1.75
percent and the real interest rate is 3.5 percent. The securitys liquidity risk premium is .25 pe

Chapter 3 problems 6, 10, 22, 30, and 32, pages 102104.
6. Using a Spreadsheet to Calculate Yield to Maturity. What is the yield to maturity on the following bonds;
all have a maturity of 10 years, a face value of $1,000, and a coupon rate of 9 percent (p

PROBLEM
1. A partcular securitys equilibrium rate of return is 8 percent. For all securites, the infaton risk premium is
1.75 percent and the real interest rate is 3.5 percent. The securitys liquidity risk premium is .25 percent and
maturity risk premium

Chapter 2 Homework
Page(s) 68 - 71
Problems 1, 2, 18, 19, 20, 21, 28, 42
1)
A particular security's equilibrium rate of return is 8 percent.
For all securities, the inflation risk premium is 1.75 percent
and the real interest rate is 3.5 percent. The secu

Chapter 12 problem 6
The financial statements for THE Bank are shown below: (LG 12-5)
Balance Sheet THE Bank
a. Calculate THE Banks earning assets.
b. Calculate THE Banks ROA.
c. Calculate THE Banks total operating income.
d. Calculate THE Banks spread.
a