Bank of the Atlantic has liabilities of $4 million with an average maturity of two...
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Finance
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5.65 million with an average maturity of 5 years earning interest rates of 6.0 percent annually. What is the maximum interest rate that it can refinance its $4 million liability and still break even on its net interest income in dollars?
Enter your answer in the box below. No need to include the %-sign in your answer.Round to the nearest three decimal places. For example, if your answer is 1.23456%, then simply enter 1.235
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