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  3. 1. the total in rate-sensitive assets for a financ

1. The total in rate-sensitive assets for a financial institution is $120 million and the...

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Finance

1. The total in rate-sensitive assets for a financial institution is $120 million and the total in rate-sensitive liabilities is $95 million. What is the cumulative pricing gap (CGAP) and what is the interest rate sensitivity gap ratio if total assets equal $195 million?\

2. Using the information from problem number 1, what would the projected change to net income be if interest rates rose by 2% on both assets and liabilities? What would the projected change to net income be if interest rates declined by 2% on both assets and liabilities?

3. Using the information from number 1, what would the projected change to net income be if interest rates rose by 1.8% on assets and 1.5% on liabilities? What would the projected change to net income be if interest rates declined by 1.8% on assets and 1.5% on liabilities?

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