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8. Consider the following balance sheet for BNA Savings, Inc. (in million): Asset Liabilities and equity Floating rate mortgages (current 10% annually) $50 Demand deposits
8. Consider the following balance sheet for BNA Savings, Inc. (in million): Asset Liabilities and equity Floating rate mortgages (current 10% annually) $50 Demand deposits (current 6% annually) 30-year fixed rate loans (current 7% annually) $50 Time deposits (current 6% annually) Equity Total Assets $100 Total Liabilities and equity $70 $20 $10 $100 A. What is BNA's expected net income at year-end? ahtaa C. Using use cumulative repricing gap model, what is the expected net interest income for a 2 percent increase in interest rates
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