Groups: M... Which of the following increases in value when interest rates increase? The stock price of a positive DGAP bank The net interest income of a negative SGAP bank The value of the long position in interest rate futures The net interest margin of a positive SGAP bank 2 19 Why does the value of an 1/0 split on a fixed-rate mortgage tend to decrease when interest rates decrease? Because the expected interest component of future mortgage payments decreases Because lower interest rates tend to result in defaults for fixed rate mortgage loans Because total mortgage payments are likely to also decrease Because borrowers are less likely to prepay their mortgages