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Question 1: Suppose National Bank of Bahrain (NBB) reports interest-sensitive assets of BD 460 million and interest-sensitive liabilities of BD 610 million. All the asset

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Question 1: Suppose National Bank of Bahrain (NBB) reports interest-sensitive assets of BD 460 million and interest-sensitive liabilities of BD 610 million. All the asset of the bank is interest sensitive. Calculate the following. a) What is the bank's dollar interest-sensitive gap? b) Its relative interest-sensitive gap? c) Interest-sensitivity ratio? d) How would the Net Interest Margin (NIM) be affected based on the dollar interest-sensitive gap calculated above

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