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Consider the following bank balance sheet and associated average interest rates. The time frame for sale sensitivity is one year Rate Assets Rate sensitive Fixed

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Consider the following bank balance sheet and associated average interest rates. The time frame for sale sensitivity is one year Rate Assets Rate sensitive Fixed rate Nonearning Total Amount $ 103,300 161,400 27,500 $292,200 Rate 3.3% 4.5% Liabilities & Equity Rate sensitive Fixed rate Nonpaying liabilities & Equity Total Amount $ 91,600 181,850 18,750 $292,200 2.1% a. If interest rates and portfolio composition remain constant during the year, then the bank's GAP is $ expected net interest income INII) is 5 and expected net interest margin (NIM) is NO comma sign, and NO sign E 9. if your answer is $1,001 643 for NII, should Instruction Type ONLY your numerical answer and found it to 2 decimal places, NOS type ONLY the number 100164 If you answer is 2016% for NIM then should type 2 02. (Continue from question 4) If there is a 2% increase in the level of ALL market interest rates tomorrow, then the CHANGE in expected Nilis S The NEW NIM IS Note only assets and liabilities that are repriceable within the one year time frame will reprice at the new interest rate Instructon Type ONLY your numerical answer and round it to 2 doomal places, NO S sign, NO commason, and NO sign of your answer is $1,001 643 for Nil, should Type ONLY the number 1001.64. If you answer is 2016% for NIM then should type 2 02

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