Question: The following financial statement is for the current year for Second National Bank. From the past, you know that 1 0 % of fixed -

The following financial statement is for the current year for Second National Bank. From the past, you know that 10% of fixed-rate mortgages prepay each year. You also estimate that 10% of checkable deposits and 20% of savings accounts are rate-sensitive.Questions:1.What is the current income gap for Second National Bank?2.What will happen to the banks current net interest income if rates fall by 75 basis points?

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