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QUESTION 9 A financial institution has the following simplified market value balance sheet: The bond has 20 years to maturity, a fixed coupon rate of

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QUESTION 9 A financial institution has the following simplified market value balance sheet: The bond has 20 years to maturity, a fixed coupon rate of 5%, and face value of 20,000 . The CD has a fixed rate of 3% and 1 year to maturity. Calculate all answers to the nearest dollar (no decimals) a) calculate net interest income at the end of the first year: b) If market interst rates have increased by 80 basis points at the end of year 1 , caiculate net interest income at the end of the second year

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