2. Consider the following bank balance sheet and associated average interest rates. The time frame for rate sensitivity is one year. Assets Rate sensitive Fixed-rate Nonearning Total 2. Net Interest Income: Amount $7,200 8,400 1,600 $17,200 3. Net Interest Margin: Rate 7% 9% Liabilities & equity Rate sensitive Fixed-rate Nonpaying liabilities Total Amount $7,600 7,200 2,400 $17,200 Calculate the Bank's GAP, expected Net Interest Income, and Net Interest Margin if interest rates and portfolio composition remain constant during the year. This bank is positioned to profit if interest rates move in which direction? 1. Bank's GAP: Rate 5% 7%