Q Is the statement TRUE or FALSE A 3 increase in interest would gain the bank $4 million according to both gap and duration analysis Explain your work Consider the following bank balance sheet Assets (2 years duration on average) Liabilities (3 years duration on average) $20 million in rate sensitive assets $40 million in rate sensitive liabilities $90 million in fixed rate assets $50 million in fixed rate liabilities $20 million capital equity

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Question: Q: Is the statement TRUE or FALSE A 3% increase in interest would gain the bank $4 million according to both gap and duration analysis..

Q: Is the statement TRUE or FALSE "A 3% increase in interest would gain the bank $4 million according to both gap and duration analysis.". Explain your work.

Consider the following bank balance sheet:

Assets (2 years duration on average)	Liabilities (3 years duration on average)
$20 million in rate sensitive assets	$40 million in rate sensitive liabilities
$90 million in fixed rate assets	$50 million in fixed rate liabilities
	$20 million capital equity

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