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Suppose you are the manager of a bank that has $12 million of xedrate assets, $30 million of rate-sensitive assets. $2 million of xed-rate liabilities.

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Suppose you are the manager of a bank that has $12 million of xedrate assets, $30 million of rate-sensitive assets. $2 million of xed-rate liabilities. and $40 million of rate-sensitive liabilities. Conduct a gap analysis for the bank, and show what will happen to bank prots if interest rates rise by 3 percentage points. The gap equals $ million. (Enter your response as a whole number. Use minus sign to enter negative value if any.) The change in bank prots from the interest rate rise is $ million. (Round your response to two decimal places.) What action will not reduce the bank's interest-rate risk? 0 A. Swapping the interest on $10 million of xed-rate assets for the interest on another bank's $10 million of rate-sensitive assets. 0 B. Reducing rate-sensitive liabilities to $30 million, O C. Swapping the interest on $10 million of rate-sensitive assets for the interest on another bank's $10 million of xed-rate assets. 0 D. Increasing rate-sensitive assets to $40 million

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