1.Calculate the repricing gap and impact on net interest income of a 1 per cent increase in interest rates for the following positions:

Rate-sensitive assets = $100 million. Rate-sensitive liabilities = $50 million.

Rate-sensitive assets = $50 million. Rate-sensitive liabilities = $150 million.

Rate-sensitive assets = $75 million. Rate-sensitive liabilities = $70 million.

Compare the interest rate risk exposure of the institutions in parts (a),

(b) and (c). LO 5.3, 5.4