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If a bank invested $75 million in a two-year asset paying 12 percent interest per year and simultaneously issued a $75 million one-year liability paying
If a bank invested $75 million in a two-year asset paying 12 percent interest per year and simultaneously issued a $75 million one-year liability paying 10 percent interest per year, what would be the net interest income in two years if, at the end of the first year, all interest rates increased by 1.5 percentage point? Multiple Choice O Decrease by $0.725 million
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