Explain the impact on the banks net interest income

Reference no: EM13265960

suppose that a bank has $5 billion of one-year loans and $20 billion of five-year loans. These are financed by the $15 billion of one-year deposits and $10 billion of five-year deposits. Explain the impact on the bank's net interest income of interest rates increasing by 1% every year for the next three years.

Reference no: EM13265960

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