North Bank has been borrowing in the U$.$S$.$ markets and lending abroad, thereby incurring foreign exchange risk. In a recent transaction, it issued a one$-$year $$1\mathrm{.}60$ million CD at $5$ percent and is planning to fund a loan in British pounds at $7$ percent for a $2$ percent expected spread. The spot rate of U$.$S$.$ dollars for British pounds is $$1\mathrm{.}440/1.$

a$.$ However, new information now indicates that the British pound will appreciate such that the spot rate of U$.$S$.$ dollars for British pounds is $$1\mathrm{.}43/1$ by year$-$end. Calculate the loan rate to maintain the $2$ percent spread.

b$.$ The bank has an opportunity to hedge using one$-$year forward contracts at $1\mathrm{.}46$ U$.$S$.$ dollars for British pounds. Calculate the net interest margin if the bank hedges its forward foreign exchange exposure.

c$.$ Calculate the loan rate to maintain the $2$ percent spread if the bank intends to hedge its exposure using the forward rates.