3. Consider the following balance sheet for ABC BankCorp (in millions of dollars):

a. Calculate the value of ABCs rate-sensitive assets if the planning period is 2 years. (2 points)

b. Calculate the value of ABCs rate-sensitive liabilities if the planning period is 2 years. (2 points)

c. Calculate the value of ABCs repricing gag if the planning period is 2 years. (1 point)

d. Calculate the expected change in the net interest income over the next 2 years for the bank if interest rates rise by 75 basis points on RSAs and rise by 50 basis points on RSLs. (2 points)

$75.00 $45.00 $42.50 3. Consider the following balance sheet for ABC BankCorp. (in millions of dollars): Assets Liabilities/Equity 1. Cash and due from category $10 1. Equity capital (fixed) 2. Short-term consumer loans $52.50 2. Demand deposits (1-year maturity) 3. Long-term consumer loans $45.50 3. One-month CDs (2-year maturity) 4. Three-month T-bills $47.25 4. Three-month CDs 5. Six-month T-notes $25.50 5. Three-month bankers' acceptances 6. 3-year T-bonds $37.25 6. Six-month commercial paper 7. 10-year, fixed-rate mortgages $100 7. 1-year time deposits 8. 30-year, floating-rate mortgages $40 8. 2-year time deposits (reset every nine months) 9. Premises $12.50 $371 $16.50 $34.50 $82.50 $30 $45 $371.00 $75.00 $45.00 $42.50 3. Consider the following balance sheet for ABC BankCorp. (in millions of dollars): Assets Liabilities/Equity 1. Cash and due from category $10 1. Equity capital (fixed) 2. Short-term consumer loans $52.50 2. Demand deposits (1-year maturity) 3. Long-term consumer loans $45.50 3. One-month CDs (2-year maturity) 4. Three-month T-bills $47.25 4. Three-month CDs 5. Six-month T-notes $25.50 5. Three-month bankers' acceptances 6. 3-year T-bonds $37.25 6. Six-month commercial paper 7. 10-year, fixed-rate mortgages $100 7. 1-year time deposits 8. 30-year, floating-rate mortgages $40 8. 2-year time deposits (reset every nine months) 9. Premises $12.50 $371 $16.50 $34.50 $82.50 $30 $45 $371.00