The managers of Mountain View Bank asks for a performance$/$risk analysis, and asks you to answer the following questions.

The Bank's balance sheet is as follows:

Assets:

$\backslash$table$[[\backslash$table$[[$Short$-$term Securities $4\mathrm{.}6\%$ rate$],[$Long$-$term Loans $7\mathrm{.}50\%$ rate$]],\backslash$table$[[500$ million$],[$$$1,000$ million$]],\backslash$table$[[1$ year or less maturity$],[10-$year maturity$]]],[$Total Assets,$$1,500$ million,$]]$

Liabilities & Equity

Short$-$term Deposits $2\mathrm{.}30\%$ rate $$750$ million $1$ year or less maturity

Certificates of Deposit $5\mathrm{.}20\%$ rate $600$ million $4-$year maturity

Total Liabilities

Equity

Total Liabilities & Equity

$\frac{150\text{m}\text{i}\text{l}\text{l}\text{i}\text{o}\text{n}}{1,500\text{m}\text{i}\text{l}\text{l}\text{i}\text{o}\text{n}}$

a$.$ What is the bank's expected net interest income S $($NII$)($i$.$e$.,$ its net interest spread$),$ and its and expected net interest margin $($NIM$)?$

Hint: NII Sum $($Each asset $x$ its rate$)$