Consider the balance sheet below. What is the net interest income? What is the net interest margin? What is the gap? What would these three measures become if short term interest rates rose by 1%? What would happen to the market value of equity? Assets ( mm) Yield Liabilities Cost Rate sensitive 600 5% 700 3% Fixed rate 450 8% 350 5% Non-earning/paying 150 100 Equity 50 Total 1200 1200