Question: Assets $40 Liabilities $80 $50 3% Interest Rate Sensitive Not interest rate Sensitive Initial Interest Rate New interest rate on interest Rate Sensitive assets and

 Assets $40 Liabilities $80 $50 3% Interest Rate Sensitive Not interest

Assets $40 Liabilities $80 $50 3% Interest Rate Sensitive Not interest rate Sensitive Initial Interest Rate New interest rate on interest Rate Sensitive assets and liabilities $110 4% 5% 4% Revenue Cost of from Assets Liabilities At Initial Interest Rate After Interest Rate Change Profits at Initial Interest Rate Profits after Interest Rate Change Gap between Interest Rate scenarios

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