1. This is a typical year for bank K. Its balance sheet has been as following (annualized data)

Asset	Amount (USD mill)	Interest rate (%)	Liability & Equity	Amount (USD mill)	Interest rate (%)
Reserve	100	0	Sight deposit	1500	1
3 month Trade Bills	500	1	3 months bank deposits	800	5
5 year fixed rate Treasury Bonds	400	3	6 months clients deposits	1000	10
5 year floating- rate corporate loans	1800	12	24 months fixed rate- clients deposits	700	12
10 year fixed rate mortgage loans	1200	15	Equity	200
Fixed assets	200

This Bank earns this year 82 in fees and commissions. It pays this year 95 in overhead costs; of this 80 is the overhead cost of the corporate business, spread 40 % for corporate lending and 60 % for Trade Bills.

The ALL in previous period was 10.

87% of the loans are categorized as the pass (No.1), 5% are as special-mention (No.2); and the rest are doubful (No.4). The interest revenue was not calculated for the No.2 and No. 4. Guaranteed are applied the Vietnamese norms. Firms have no formal guaranteed. Income tax is 25%.

1. What are the PLL and ALL?

2. What are NIM, NNM, AU, ER, EM?

3. What is the return on equity of the Bank?

4. What is the risk asset ratio (Basel I) of the Bank?

5. Does the Bank have an interest rate exposure, if yes, which one? How much will the bank lose if the interest rate increases to 1%?