The FIN343 State Bank has $1,000 in total assets (all of which are earning assets), $700 of which will be repriced within the next 90 days. This bank also has $800 in total liabilities, $400 of which will be repriced within the next 90 days. Currently, the bank is earning 8 percent on its assets and is paying 5 percent on its liabilities.

a) If interest rates do not change in the next 90 days, what is this bank's net interest margin?

b) What is the dollar interest-sensitive gap of this bank?

c) If interest rates on both assets and liabilities rise by 2 percent in the next 90 days, what would be the bank's net interest margin?

d) If interest rates on both assets and liabilities rise by 2 percent in the next 90 days, what should happen to this bank's net interest margin?