1. If your bank's 1-year maturity GAP is negative, a decrease in interest rates is going to [ ] your bank's income (over the next year) because your bank's [ ]. a) decrease ; b) decrease ; have a negligible impact on ; d) increase e) increase ; interest income on assets decreases assets are more interest rate sensitive income is not interest-rate sensitive cost of funds increases assets are less interest rate sensitive 2. A bond with an 8% coupon and 10% required rate of return will sell at a [ ] par value and it is a/an [ ] investment as/than an otherwise similar bond paying 12% coupon. a) b) c) discount from discount from discount from premium to premium to equally good worse better worse better e)