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If a bank has $45 million of fixedrate assets, $40million of rate-sensitive assets, $35 million of fixed-rate liabilities, and $50 million of rate-sensitive liabilities; conduct

If a bank has $45 million of fixedrate assets, $40million of rate-sensitive assets, $35 million of fixed-rate liabilities, and $50 million of rate-sensitive liabilities; conduct a gap analysis to determine how the banks profits would change if interest rates rise by 200 basis points (two percent). Show your work.

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