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c) Consider the following balance sheet positions for a financial institution: Rate-sensitive assets =$250 million Rate-sensitive liabilities =$220 million i) Calculate the repricing gap and
c) Consider the following balance sheet positions for a financial institution: Rate-sensitive assets =$250 million Rate-sensitive liabilities =$220 million i) Calculate the repricing gap and the impact on net interest income of a 1.5 percent increase in interest rates for each position. [2 marks] ii) Calculate the repricing gap and the impact on net interest income of a 1.5 percent decrease in interest rates for each position. [2 marks]
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