What is the repricing gap for the FI

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Question a. What is the change in the value of its assets if all interest rates decrease by 1 percent?

Question b. What is the change in the value of its liabilities if all interest rates decrease by 1 percent?

Question c. What is the effect on the value of the FI's equity if interest rates decrease by 1 percent?

Question d. What is the repricing gap for the FI?

Question e. What will be the FI's net interest income at year-end if interest rates do not change?

Question f. Suppose short-term interest rates increase by 1 percent. Calculate the change in net interest income after the interest rate increase.

Attachment:- FI.rar

Reference no: EM132471363

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