Here is Simple Bank's balance sheet (with associated interest rates):

Assets

$800 million Business Loans, 7.5%

$200 million Corporate Bonds, 4.25%

$25 million Reserves, Fed pays 0.5%

$10 million Real Assets

Liabilities

$550 million Demand Deposits

$360 million Time Deposits, 2.5%

$25 million Preferred Shares,3.3%

$100 million Common Shares

Question:

1. Calculate the bank's Net Interest Margin, nothing that dividends on preferred shares are not included (because they are not interest)
2. If capital requirements are 8% for loans and 6% for bonds, calculate the bank's capital excess or deficiency.