How the bank profits would change

Reference no: EM131941359

Question: If a bank has $45 million of fixed-rate 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 bank's profits would change if interest rates rise by 200 basis points (two percent). Show your work.

Reference no: EM131941359

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