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Business, 18.12.2019 01:31 kellysmith45

Printreferencesitem 1item 1 a di has assets of $28 million consisting of $9 million in cash and $19 million in loans. it has core deposits of $18 million. it also has $5 million in subordinated debt and $5 million in equity. increases in interest rates are expected to result in a net drain of $3 million in core deposits over the year. a-1. the average cost of deposits is 5 percent and the average yield on loans is 8 percent. the di decides to reduce its loan portfolio to offset this expected decline in deposits. what is the cost to the firm from this strategy after the drain

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