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Honey & Banking(1) Suppose you are the manager of a bank that has $85 million of fixed-rate assets, $75 million of rate-sensitive assets, $65 million
Honey & Banking(1) Suppose you are the manager of a bank that has $85 million of fixed-rate assets, $75 million of rate-sensitive assets, $65 million of fixed-rate liabilities, and $65 million of rate-sensitive liabilities a) Conduct a gap analysis for the bank, and show what will happen to bank profits if interest rates rise from .08 to 13 points. What actions could you take to reduce the bank's interest-rate risk? Select one: O a. Gap: $ 1.5 Million O b. None of the other three answers Oc Gap $ 0.5 Million Od. Gap: $5.5 Million
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