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Calculate the pooled marginal cost of funds for thebusiness
Glenville Bank is currently faced with high demand for additional new loans: $50m in household loans, and $30m in business loans. The bank has decidedto finance this new pool of loans using the following funding mix:. Household loans to be funded by savings deposits (35%), fixed deposits (55%), and equity (10%);. Business loans to be funded by fixed deposits (23%), certificates of deposit (60%), and equity (17%).Calculate the pooled marginal cost of funds for the business loan funding mix in percentage terms, given the following information for Glenville Bank:Funding SourceMarginal Cost of Funds (perannum)Savings deposits5.5%Fixed deposits7.5%Certificates of deposit9%Equity12%NOTE: By default, the unit of the answer is %. Enter your answer with TWO (2) decimal places. For example, if your answer is 9%, enter 9.00.
