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Assume Merchants National Bank is operating a positive gap of $10 million and they decide to take on $1.5 million of new interest bearing short-term
Assume Merchants National Bank is operating a positive gap of $10 million and they decide to take on $1.5 million of new interest bearing short-term liabilities. After which interest rates subsequently rise from 4% to 7%. What effect will this have on Merchants income?
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