Explain the impact on the banks net interest

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Suppose that a bank has $5 billion of one-year loans and $30 billion of five-year loans. These are financed by $25 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 2% every year for the next three years.

Reference no: EM13880610

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