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3. 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

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3. 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 inter- est income if, at the end of the first year, all interest rates increased by 1 percentage point? (LG 19-1)

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