If the manager of the first national bank revises the


If the manager of the First National Bank revises the estimate of the percentage of fixed-rate mortgages that are repaid within a year from 20% to 10%, what will be the revised estimate of the interest-rate risk the bank faces?

What will happen to profits next year if interest rates fall by 2 percentage points? 

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Finance Basics: If the manager of the first national bank revises the
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