1. Alpha Bank has the following balance sheet: Amount (US$) Rate (%) Rate-sensitive assets 6000 24 Fixed-rate assets 3000 28 Non-earning assets 1000 0 Rate-sensitive liabilities 7000 20 Fixed-rate liabilities 1200 24 Non-interest bearing liabilities 1000 0 Net worth 800 Compute the following performance measures after 1 year: (a) Net interest income (NII). (b) Net interest margin (NIM). (c) Return on equity, if provision of loan losses is US$50, operational expenses are US$100, security gains/losses are US$25 the bank pays income tax at 30% and a reconstruction levy of 10% of profits after income tax. (d) Suppose there was a shock to the economy and interest rates on rate-sensitive assets and liabilities increase by 200 basis points. What will be the immediate impact on net interest income and net interest margin