Question: QUESTION 3 Marks] [28 Study the below Balance Sheet Composition and Average Interest rates of Liberty Bank: Assets Yield Rates Llabilities Interest Costs Rate Sensitive

QUESTION 3 Marks] [28 Study the below Balance Sheet Composition and

QUESTION 3 Marks] [28 Study the below Balance Sheet Composition and Average Interest rates of Liberty Bank: Assets Yield Rates Llabilities Interest Costs Rate Sensitive 52,000.00 7% 30,000.00 3% Fixed-rate 64,000.00 9% 18,000.00 Nonearning/Nonpaying 280,000.00 23,800.00 Equity 328,200.00 TOTAL 400,000.00 400,000.00 Required: 3.1. What is the difference between RSA and RSL? (6 marks) 3.2. Determine the Net interest income of Liberty Bank (6 marks) 3.3. What is the Net interest margin of Liberty Bank? (6 marks) 3.4. Calculate the gap of Liberty Bank? (8 marks) 3. 6. Given the value you found in question 3.4 above, explain the change in net interest income if the yield rate and interest cost increases? marks) Page 14 of 15

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