use the formula not Excel

3. Assume the initial rate on a 1/1 ARM is 11.50%. The loan has a margin of +265 basis points above Libor. In one year after the loan is originated, the Libor is 9.5%. What is the fully indexed rate on the loan in one year?

4. Suppose a bank pays depositors 0.40% on their checking deposits. The same bank makes mortgages at 3.50%. What is the banks Net Interest Margin (NIM)?