Question: Compute the change in the annual Net Interest Margin, given the following information: Rate sensitive assets (0-1yr): Book value = $50 million: Market value =

Compute the change in the annual Net Interest Margin, given the

Compute the change in the annual Net Interest Margin, given the following information: Rate sensitive assets (0-1yr): Book value = $50 million: Market value = $60 million Rate sensitive liabilities (0-1yr): Book value - $90 million; Market value - $95 million Average earning assets (book value) - 200 million; Average earning assets (mkt value) - $240 million Change in interest rates (expected) - increase of 50 basis points O- 0.1% O + 0.1% +1.0% +0.073% 0 -0.73%

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