For Question 2-5 Assets Yleld Liability Cost Rate sensitive 1000 5% 800 2% Flx rate 2000 7% 1800 6% Not earning 1000 2600 Shareholder Equity 1400 Total 2. Find out Net Interest Income, Net Interest Margin, and GAP? 4000 4000 If yield curve moves parallel and interest rate increase by 2 percent, what happens to net interest income, net interest margins and GAP (decrease or increase by how much for each)? Why? if Interest rate for assets increases by 1 percent and spread decrease by 1 percent, what happens to net interest income, net interest margins and GAP? (decrease or increase by how much for each) Why? Interest rate for assets increases by 3 percent, spread decrease by 1 percent, and rate sensitive assets and rate sensitive liability together increase by 100% what happens to net interest income, net interest margins and GAP? (decrees or increase by how much for each) Why