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 bank's Net Interest Margin (NIM)? 5, A bank originates a 30 year fully amortizing FRM at an annual interest rate of 5.5%. 9 years later the bank's cost of funds is 12.50%. What is th bank's NIM on this loan? (Your answer can be positive or negative, use the sign!)