7. Using the data in the Table below (360-day/year)

Asset Amount Days to Maturity/repricing b

Demand loans 1000 0 0.9

Floating rate securities 600 90 1

Fixed-rate Instrument loans 800 270 0.8

Fixed-rate-Mortgages 1200 720 1

Liabilities Amount Days to Maturity/repricing g

Demand deposits 2000 0 0.6

Fixed-rate Certificates of deposit 600 180 0.9

Floating-rate bonds 1000 360 1

1) Compute the one-year repricing gap and use it to estimate the impact of a 0.5% increase in market rates on the bank's net interest income.

change in NII = G * change in r

2) Compute the one-year maturity-adjusted gap and use it to estimate the effect of a 0.5% increase in market rates on the bank's net interest income.

3) Compute the one-year standardised gap and use it to estimate the effect of a 0.5% increase in market rates on the bank's net interest income.

4) Compare the differences among the results above and provide an explanation.