Calculate the repricing gap and impact on net interest income of a 1 percent increase in interest rates for the following positions: (LG 23-1)

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

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

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

d. What conclusions can you draw about the repricing gap model from the above results?

AppendixLO1