What change will occur in net interest income

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Question: People's Savings Bank, a thrift institution, has a cumulative gap for the coming year of +$135 mil-lion and interest rates are expected to fall by two and a half percentage points. Can you calculate the expected change in net interest income that this thrift institution might experience? What change will occur in net interest income if interest rates rise by one and a quarter percentage points?

Reference no: EM131717511

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