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What is the income gap for the bank

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Reference no: EM133114004

Duration gap for the bank is 1,715,000

1. If the First National Bank sells $10 million of its securities with maturities greater than two years and replaces them with securities maturing in less than one year, what is the income gap for the bank? What will happen to profits next year if interest rates fall by 3 percentage points?

Reference no: EM133114004

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