If a bank invested $50 million in a two-year asset paying 10 percent interest per year and

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If a bank invested $50 million in a two-year asset paying 10 percent interest per year and simultaneously issued a

$50 million one-year liability paying 8 percent interest per year, what would be the impact on the bank’s net interest income if, at the end of the first year, all interest rates increased by 1 percentage point? (LG 20-1)

AppendixLO1

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ISE Financial Markets And Institutions

ISBN: 9781265561437

8th International Edition

Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts

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