4. (25 pts) The balance sheet of Schwab, a government security dealer, is listed below. Market yields are in parentheses and amounts are in millions. Assets Cash Liabilities and Equity $20 Overnight repos $340 1-month T-bills (7.05%) 150 Subordinated debt 3-month T-bills (7.25%) 150 7-year fixed rate (8.55%) 300 2-year T-notes (7.50%) 100 8-year T-notes (8.96%) 200 5-year munis (floating rate) (8.20% reset every 6 months) 50 Equity Total assets $670 Total liabilities and equity 30 $670 a. What is the repricing gap given the following planning periods... 30 days? 3 mos.? 2 years? b. What is the impact over the next 3 mos. on the NII if interest rates increase 75 basis points on RSA's and 85 basis points on RSL's? c. What is the impact over the next 2 years on the NII if interest rates increase 75 basis points on RSA's and 85 basis points on RSL's? d. Explain the difference between your b and c answers? Why would one answer be positive change versus a negative change in NII?