1. The following is the balance sheet of Boston Bank. 3-mth T-Bills 1-yr Loans 5-yr Bonds 10-yr Mortgages $60m $90m $100m $30m Demand Deposit Fed funds 1-mth CD 3-yr Notes Equity $110m $20m $70m $45m $35m (a) What is the impact on NII if interest rates rise by 15bp in the coming 3 months? Ignore runoffs. (b) What is the impact on NII if interest rates drop by 40bp at the end of Year 3? Ignore runoffs. (c) For a 1-yr repricing basket, how will NII change if interest rates on RSAs increase 60 basis points and those on RSLs increase 80 basis points? Ignore runoffs. (d) If you expect the following 1-yr runoffs: $20m for 5-year Bonds and $10m for 10-yr Mortgages, how would your answer in (c) be? 1. The following is the balance sheet of Boston Bank. 3-mth T-Bills 1-yr Loans 5-yr Bonds 10-yr Mortgages $60m $90m $100m $30m Demand Deposit Fed funds 1-mth CD 3-yr Notes Equity $110m $20m $70m $45m $35m (a) What is the impact on NII if interest rates rise by 15bp in the coming 3 months? Ignore runoffs. (b) What is the impact on NII if interest rates drop by 40bp at the end of Year 3? Ignore runoffs. (c) For a 1-yr repricing basket, how will NII change if interest rates on RSAs increase 60 basis points and those on RSLs increase 80 basis points? Ignore runoffs. (d) If you expect the following 1-yr runoffs: $20m for 5-year Bonds and $10m for 10-yr Mortgages, how would your answer in (c) be