1. Consider the following balance sheet for Popes Creek Bank (in millions) Balance Sheet (unit: $ millions) Assets Floating-rate mortgages (currently 10% annually) Liabilities 1-year time deposit (currently 5% 50 annually) 70 30-year fixed-rate loans (currently 7% annually) 3-year time deposits (currently 8% 50 annually) 20 10 100 Equity Total Assets 100 Total Liabilities and Equity a. What is Popes Creek's expected net interest income at year-end? b, what will net interest income be at year-end if interest rates rise by 2%? Using the one-year cumulative repricing gap model, what is the expected net interest income for a 2 percent increase in in interest rates? c. d. What will net interest income be a year-end if interest rates on RSAs increase by 2 percent but interest rate on RSLs increase by 1 percent? Is it reasonable for changes in interest rates on RSAs and RSLs to differ? Why