Item 7A.
Quantitative and Qualitative Disclosures About Market Risk (Amounts in millions) In the normal course of business, we are exposed to market risks related to interest rates, foreign currency rates and certain balance sheet items.
From time to time, we use derivative instruments, pursuant to established guidelines and policies, to manage some portion of these risks.
Derivative instruments utilized in our hedging activities are viewed as risk management tools and are not used for trading or speculative purposes.
Interest Rates Our exposure to market risk for changes in interest rates relates primarily to the fair market value and cash flows of our debt obligations.
The majority of our debt (approximately 91% and 86% as of December 31, 2014 and 2013, respectively) bears interest at fixed rates.
We do have debt with variable interest rates, but a 10% increase or decrease in interest rates would not be material to our interest expense or cash flows.
The fair market value of our debt is sensitive to changes in interest rates, and the impact of a 10% change in interest rates is summarized below.
## Table 0 ##
We have used interest rate swaps for risk management purposes to manage our exposure to changes in interest rates.
We do not have any interest rate swaps outstanding as of December 31, 2014.
We had $1,667.2 of cash, cash equivalents and marketable securities as of December 31, 2014 that we generally invest in conservative, short-term bank deposits or securities.
The interest income generated from these investments is subject to both domestic and foreign interest rate movements.
During 2014 and 2013, we had interest income of $27.4 and $24.7, respectively.
Based on our 2014 results, a 100-basis-point increase or decrease in interest rates would affect our interest income by approximately $16.7, assuming that all cash, cash equivalents and marketable securities are impacted in the same manner and balances remain constant from year-end 2014 levels.
Foreign Currency Rates We are subject to translation and transaction risks related to changes in foreign currency exchange rates.
Since we report revenues and expenses in U. S.  Dollars, changes in exchange rates may either positively or negatively affect our consolidated revenues and expenses (as expressed in U. S.  Dollars) from foreign operations.
The primary foreign currencies that impacted our results during 2014 included the Argentine Peso, Australian Dollar, Brazilian Real and British Pound Sterling.
Based on 2014 exchange rates and operating results, if the U. S.  Dollar were to strengthen or weaken by 10%, we currently estimate operating income would decrease or increase approximately 4%, assuming that all currencies are impacted in the same manner and our international revenue and expenses remain constant at 2014 levels.
The functional currency of our foreign operations is generally their respective local currency.
Assets and liabilities are translated at the exchange rates in effect at the balance sheet date, and revenues and expenses are translated at the average exchange rates during the period presented.
The resulting translation adjustments are recorded as a component of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our Consolidated Balance Sheets.
Our foreign subsidiaries generally collect revenues and pay expenses in their functional currency, mitigating transaction risk.
However, certain subsidiaries may enter into transactions in currencies other than their functional currency.
Assets and liabilities denominated in currencies other than the functional currency are susceptible to movements in foreign currency until final settlement.
Currency transaction gains or losses primarily arising from transactions in currencies other than the functional currency are included in office and general expenses.
We have not entered into a material amount of foreign currency forward exchange contracts or other derivative financial instruments to hedge the effects of potential adverse fluctuations in foreign currency exchange rates.
STATE STREET CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) model, an entity would recognize revenue that represents the transfer of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
The amendment supersedes most current GAAP related to revenue recognition, including industry-specific guidance.
The amendment is effective for State Street beginning on January 1, 2017, and must be applied retrospectively.
Early adoption is prohibited.
We are currently assessing the potential impact of this amendment on our consolidated financial statements.
In April 2014, the FASB issued an amendment to GAAP that revises the criteria for the treatment and disclosure of discontinued operations.
The amendment allows entities to have significant continuing involvement and continuing cash flows with the discontinued operation, but requires additional disclosure for discontinued operations and disclosure for disposals deemed to be material that do not meet the definition of a discontinued operation.
The presentation and disclosure requirements are effective for State Street beginning on January 1, 2015, and are required to be applied prospectively to discontinued operations occurring after that date.
We did not have any transactions that qualified as discontinued operations during the periods presented in our consolidated financial statements.
In January 2014, the FASB issued an amendment to GAAP that allows an investor in an affordable housing project, if the project meets certain defined conditions, to amortize the cost of their investment in proportion to the tax credits and other tax benefits they receive, and reflect it as part of income tax expense rather than as revenue from operations.
The amendment is effective, for State Street, for interim and annual periods beginning January 1, 2015, and will not have a material effect on our consolidated financial statements.
Other Significant Policies: The following table identifies our other significant accounting policies and the note and page where a detailed description of each policy can be found.
## Table 1 ##
Note 2.
Fair Value Fair-Value Measurements: We carry trading account assets, investment securities available for sale and various types of derivative financial instruments at fair value in our consolidated statement of condition on a recurring basis.
Changes in the fair values of these financial assets and liabilities are recorded either as components of our consolidated statement of income or as components of accumulated other comprehensive income, or AOCI, within shareholders' equity in our consolidated statement of condition.
We measure fair value for the above-described financial assets and liabilities in conformity with GAAP that governs the measurement of the fair value of financial instruments.
Management believes that its valuation techniques and underlying assumptions used to measure fair value conform to the provisions of GAAP.
We categorize the financial assets and liabilities that we carry at fair value based on a prescribed three-level valuation hierarchy.
The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level 1) and the lowest priority to valuation methods using significant unobservable inputs (level 3).
If the inputs used to measure a financial asset or liability cross different levels of the hierarchy, categorization is based on the lowest-level input that is significant to the fair-value measurement.
Management's assessment of the significance of a particular input to the overall fair-value measurement of a financial asset or liability requires judgment, and considers factors specific to that asset or liability.
The three levels of the valuation hierarchy are described below.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) 66 TABLE 17: INVESTMENT SERVICING LINE OF BUSINESS RESULTS
## Table 2 ##
Investment Servicing Total revenue and total fee revenue in 2014 for our Investment Servicing line of business, presented in Table 17: Investment Servicing Line of Business Results, increased 4% and 6%, respectively, compared to 2013.
The increase in total fee revenue primarily resulted from increases in servicing fees, securities finance revenue and trading services revenue, partially offset by a decline in processing fees and other revenue.
Servicing fees increased 6% in 2014 compared to 2013, primarily the result of stronger global equity markets and the positive revenue impact of net new business (revenue added from new servicing business installed less revenue lost from the removal of assets serviced).
Trading services revenue increased 1% in 2014 compared to 2013, primarily as a result of higher client volumes in direct sales and trading, partially offset by a decline in client volumes in electronic foreign exchange trading services.
Securities finance revenue increased 22% in 2014 compared to 2013, mainly the result of growth in our enhanced custody business and higher volumes.
Processing fees and other revenue decreased 13% in 2014 compared to 2013, primarily due to higher amortization of tax-advantaged investments, partially offset by higher loan service fees due to higher average loan volumes and higher revenue from our investment in bank-owned life insurance.
Servicing fees, securities finance revenue and net gains (losses) related to investment securities for our Investment Servicing business line are consistent with the respective consolidated results.
Refer to “Servicing Fees,” "Securities Finance" and “Gains (Losses) Related to Investment Securities, Net” under “Total Revenue” in this Management’s Discussion and Analysis for a more in-depth discussion.
A discussion of trading services revenue and processing fees and other revenue is provided under “Trading Services” and “Processing Fees and Other” in “Total Revenue.
” Net interest revenue decreased 1% in 2014 compared to 2013 generally the result of lower yields on interest earning assets, as lower global interest rates affected our revenue from floating-rate assets, partially offset by the benefit of higher levels of interest-earning assets and lower rates on interest paid.
A discussion of net interest revenue is provided under “Net Interest Revenue” in “Total Revenue.
” Total expenses increased 7% in 2014 compared to 2013, primarily driven by increases in other expenses, compensation and employee benefit expenses and transaction processing services.
TABLE 18: INVESTMENT MANAGEMENT LINE OF BUSINESS RESULTS
## Table 3 ##
Investment Management Total revenue for our Investment Management line of business, presented in Table 18: Investment Management Line of Business Results, increased 5% in 2014 compared to 2013.
Total fee revenue increased 6% compared to 2013, primarily the result of increases in management fees, partially offset by decreases in trading services revenue.
Management fees increased 9% in 2014 compared to 2013, primarily the result of stronger global equity markets and net inflows.
Trading services revenue declined 33% in 2014 compared to 2013, mainly due to lower distribution fees associated with the SPDR?
Gold ETF, which resulted from outflows and a lower average gold price during the period.
Management fees for the Investment Management business line are consistent with the
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) 74 The improvement to a net unrealized gain position as of December 31, 2014 from a net unrealized loss position as of December 31, 2013, presented in Table 25: Amortized Cost, Fair Value and Net Unrealized Gains (Losses) of Investment Securities, was primarily attributable to narrowing spreads in 2014.
TABLE 25: AMORTIZED COST, FAIR VALUE AND NET UNREALIZED GAINS (LOSSES) OF INVESTMENT SECURITIES

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>Increase/(Decrease)in Fair Market Value</td></tr><tr><td>As of December 31,</td><td>10% Increasein Interest Rates</td><td>10% Decreasein Interest Rates</td></tr><tr><td>2014</td><td>$-35.5</td><td>$36.6</td></tr><tr><td>2013</td><td>-26.9</td><td>27.9</td></tr></table>
<table><tr><td>Fair Value</td><td>Note</td><td>2</td><td>Page</td><td>130</td></tr><tr><td>Investment Securities</td><td>Note</td><td>3</td><td>Page</td><td>142</td></tr><tr><td>Loans and Leases</td><td>Note</td><td>4</td><td>Page</td><td>150</td></tr><tr><td>Goodwill and Other Intangible Assets</td><td>Note</td><td>5</td><td>Page</td><td>154</td></tr><tr><td>Contingencies</td><td>Note</td><td>11</td><td>Page</td><td>160</td></tr><tr><td>Variable Interest Entities</td><td>Note</td><td>12</td><td>Page</td><td>162</td></tr><tr><td>Equity-Based Compensation</td><td>Note</td><td>14</td><td>Page</td><td>168</td></tr><tr><td>Regulatory Capital</td><td>Note</td><td>15</td><td>Page</td><td>170</td></tr><tr><td>Derivative Financial Instruments</td><td>Note</td><td>16</td><td>Page</td><td>173</td></tr><tr><td>Income Taxes</td><td>Note</td><td>22</td><td>Page</td><td>185</td></tr><tr><td>Earnings Per Common Share</td><td>Note</td><td>23</td><td>Page</td><td>187</td></tr></table>
<table><tr><td></td><td colspan="4">InvestmentServicing</td></tr><tr><td>Years Ended December 31,</td><td>2014</td><td>2013</td><td>2012</td><td>% Change 2014 vs. 2013</td></tr><tr><td>(Dollars in millions, except where otherwise noted)</td><td></td><td></td><td></td><td></td></tr><tr><td>Servicing fees</td><td>$5,129</td><td>$4,819</td><td>$4,414</td><td>6%</td></tr><tr><td>Trading services</td><td>1,039</td><td>1,027</td><td>938</td><td>1</td></tr><tr><td>Securities finance</td><td>437</td><td>359</td><td>405</td><td>22</td></tr><tr><td>Processing fees and other</td><td>179</td><td>206</td><td>235</td><td>-13</td></tr><tr><td>Total fee revenue</td><td>6,784</td><td>6,411</td><td>5,992</td><td>6</td></tr><tr><td>Net interest revenue</td><td>2,188</td><td>2,221</td><td>2,464</td><td>-1</td></tr><tr><td>Gains (losses) related to investment securities, net</td><td>4</td><td>-9</td><td>69</td><td></td></tr><tr><td>Total revenue</td><td>8,976</td><td>8,623</td><td>8,525</td><td>4</td></tr><tr><td>Provision for loan losses</td><td>10</td><td>6</td><td>-3</td><td></td></tr><tr><td>Total expenses</td><td>6,648</td><td>6,190</td><td>6,058</td><td>7</td></tr><tr><td>Income before income tax expense</td><td>$2,318</td><td>$2,427</td><td>$2,470</td><td>-4</td></tr><tr><td>Pre-tax margin</td><td>26%</td><td>28%</td><td>29%</td><td></td></tr><tr><td>Average assets (in billions)</td><td>$234.2</td><td>$203.2</td><td>$190.1</td><td></td></tr></table>
<table><tr><td></td><td colspan="4">InvestmentManagement</td></tr><tr><td>Years Ended December 31,</td><td>2014</td><td>2013</td><td>2012</td><td>% Change 2014 vs. 2013</td></tr><tr><td>(Dollars in millions, except where otherwise noted)</td><td></td><td></td><td></td><td></td></tr><tr><td>Management fees</td><td>$1,207</td><td>$1,106</td><td>$993</td><td>9%</td></tr><tr><td>Trading services</td><td>45</td><td>67</td><td>98</td><td>-33</td></tr><tr><td>Processing fees and other</td><td>-5</td><td>6</td><td>5</td><td></td></tr><tr><td>Total fee revenue</td><td>1,247</td><td>1,179</td><td>1,096</td><td>6</td></tr><tr><td>Net interest revenue</td><td>72</td><td>82</td><td>74</td><td>-12</td></tr><tr><td>Total revenue</td><td>1,319</td><td>1,261</td><td>1,170</td><td>5</td></tr><tr><td>Total expenses</td><td>960</td><td>822</td><td>847</td><td>17</td></tr><tr><td>Income before income tax expense</td><td>$359</td><td>$439</td><td>$323</td><td>-18</td></tr><tr><td>Pre-tax margin</td><td>27%</td><td>35%</td><td>28%</td><td></td></tr><tr><td>Average assets (in billions)</td><td>$3.9</td><td>$3.8</td><td>$3.7</td><td></td></tr></table>

Question: assuming that all cash , cash equivalents and marketable securities are invested to generate the stated interest income in 2014 , what would be the average interest rate?
Answer: 0.01643
Reasoning program: divide(27.4,1667.2)