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 $60

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

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 !3! 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% + 0.1% O +1.0% O +0.073% O -0.73%

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