Here is Simple Bank’s balance sheet (with associated interest rates): Assets $800 million Business Loans, 7.5% $200 million Corporate Bonds, 4.25% $25 million Reserves, Fed pays 0.5% $10 million Real...

Here is Simple Bank’s balance sheet (with associated interest rates):

Assets

$800 million Business Loans, 7.5%

$200 million Corporate Bonds, 4.25%

$25 million Reserves, Fed pays 0.5%

$10 million Real Assets

Liabilities

$550 million Demand Deposits

$360 million Time Deposits, 2.5%

$25 million Preferred Shares,  3.3%

$100 million Common Shares

Q.  Calculate the bank’s Net Interest Margin, nothing that dividends on preferred shares are not included (because they are not