#$1.$ Use the following information about a hypothetical government security dealer named M$.$ P$.$ Jorgan.

Market yields are in parenthesis, and amounts are in millions.

a$.$ What is the repricing gap if the planning period is $30$ days? $3$ months? $2$ years? Recall that cash is a

non$-$interest$-$earning asset.

b$.$ What is the impact over the next $30$ days on net interest income if interest rates increase $50$ basis

points? Decrease $75$ basis points?

c$.$ The following one$-$year runoffs are expected: $$10$ million for two$-$year business loans and $$20$

million for eight$-$year mortgage loans. What is the one$-$year repricing gap?

d$.$ If runoffs are considered, what is the effect on net interest income at year$-$end if interest rates

increase $50$ basis points? Decrease $75$ basis points?