an FI has $100M of fixed earning assets that mature in 2 years. The assets earn an average of 7%. these are funded by 6 month CD liqbilities paying 4%. what is the banks NIM

3. Interest Rate Risk (1) An Fl has $100 million of fixed earning assets that mature in 2 years. The assets earn an average of 7%. These are funded by 6 month CD liabilities paying 4%. What is the bank's net interest margin (NIM)? (2) How does the NIM change if in 6 months interest rates increase 100 basis points