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 million with an average maturity of 5 years earning interest rates of 6.0 percent annually. What is the bank's net interest income in dollars in year 3, after it refinances all of its liabilities at a rate of 6.0 percent?
A. -$60,000.
B. -$140,000.
C. +$140,000.
D. +$60,000.
E. +$800,000.
Ans: D. +$60,000.
Business
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