Question
First National Bank Assets Liabilities Rate-sensitive $40 million $50 million Fixed-rate $60 million $50 million If interest rates rise by 5 percentage points, say from
- First National Bank
|
| Assets | Liabilities |
| Rate-sensitive | $40 million | $50 million |
| Fixed-rate | $60 million | $50 million |
If interest rates rise by 5 percentage points, say from 10 to 15%, what will the effect on bank profits (measured using gap analysis) be?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
