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Consider the following balance sheet for Whiz Financial Services Limited: Required: A. Calculate the value of the rate sensitive assets, rate sensitive liabilities and the

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Consider the following balance sheet for Whiz Financial Services Limited: Required: A. Calculate the value of the rate sensitive assets, rate sensitive liabilities and the repricing gap over the next year. (15 marks) B. Calculate the expected change in the net interest income for the bank if interest rates rise by 1 percent on both rate sensitive assets and rate sensitive liabilities. (5 marks) c. If a bank manager was quite certain that interest rates were going to rise within the next six months, how should the bank manager adjust the bank's one-year Page 2 of 10 repricing gap to take advantage of this anticipated rise? What if the manger believed rates would fall in the next one year? (5 marks) [TOTAL: 25 MARKS]

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