Peoples’ Savings Bank, a thrift institution, has a cumulative gap for the coming year of +$145...

Peoples’ Savings Bank, a thrift institution, has a cumulative gap for the coming year of +$145 million and interest rates are expected to fall by 3.5 percentage points.

(1) What is the expected change in net interest income that this thrift institution might experience?

(2) What change will occur in net interest income if interest rates rise by 1.5 percentage points?

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 9 months ago

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