9. 50 Bank of Davenport's balance sheet is listed below. Market yields are in parenthesis, and amounts are in millions. Assets Liabilities and Equity Cash $20 Demand deposits $250 Fed funds (1.05%) 150 Savings accounts (1.5%) 20 3-month T-bills (5.25%) 150 MMDAS (2.5%) 2-year T-notes (6.50%) 100 (no minimum balance requirement) 340 8-year T-bonds (7.50%) 200 3-month CDs (4.2%) 120 5-year munis (floating rate) 6-month CDs (4.3%) 220 (8.20%, repriced @ 6 months) 1-year CDs (4.5%) 375 6-month consumer loans (6%) 250 2-year CDs (5%) 425 1-year consumer loans (5.8%) 300 4-year CDs (5.5%) 330 5-year car loans (7%) 350 5-year CDs (6%) 350 7-month C&I loans (5.8%) 200 Fed funds (1%) 225 2-year C&I loans (floating rate) Overnight repos (1.25%) 290 (5.15%, repriced @ 6-months) 275 6-month commercial paper (3%) 300 15-year variable rate mortgages Subordinate notes: (5.8%, repriced @ 6-months) 200 3-year fixed rate (6.55%) 200 15-year variable rate mortgages Subordinated debt: (6.1%, re priced @ year) 400 7-year fixed rate (7.25%) 100 15-year fixed-rate mortgages (7.85%) 300 Total liabilities $3,545 30-year variable rate mortgages (6.3%, repriced @ quarter) 225 30-year variable rate mortgages (6.4%, repriced @ month) 355 30-year fixed-rate mortgages (8.2%) 400 Premises and equipment 20 Equity 400 Total assets $3.945 Total liabilities and equity $3.945 a. What is the repricing gap if the planning period is 30 days? 6 months? 1 year? 2 years? 5 years? b. What is the impact over the next six months on net interest income if interest rates on RSAS increase 60 basis points and on RSLs increase 40 basis points? c. What is the impact over the next year on net interest income if interest rates on RSAs increase 60 basis points and on RSLs increase 40 basis points? 9. 50 Bank of Davenport's balance sheet is listed below. Market yields are in parenthesis, and amounts are in millions. Assets Liabilities and Equity Cash $20 Demand deposits $250 Fed funds (1.05%) 150 Savings accounts (1.5%) 20 3-month T-bills (5.25%) 150 MMDAS (2.5%) 2-year T-notes (6.50%) 100 (no minimum balance requirement) 340 8-year T-bonds (7.50%) 200 3-month CDs (4.2%) 120 5-year munis (floating rate) 6-month CDs (4.3%) 220 (8.20%, repriced @ 6 months) 1-year CDs (4.5%) 375 6-month consumer loans (6%) 250 2-year CDs (5%) 425 1-year consumer loans (5.8%) 300 4-year CDs (5.5%) 330 5-year car loans (7%) 350 5-year CDs (6%) 350 7-month C&I loans (5.8%) 200 Fed funds (1%) 225 2-year C&I loans (floating rate) Overnight repos (1.25%) 290 (5.15%, repriced @ 6-months) 275 6-month commercial paper (3%) 300 15-year variable rate mortgages Subordinate notes: (5.8%, repriced @ 6-months) 200 3-year fixed rate (6.55%) 200 15-year variable rate mortgages Subordinated debt: (6.1%, re priced @ year) 400 7-year fixed rate (7.25%) 100 15-year fixed-rate mortgages (7.85%) 300 Total liabilities $3,545 30-year variable rate mortgages (6.3%, repriced @ quarter) 225 30-year variable rate mortgages (6.4%, repriced @ month) 355 30-year fixed-rate mortgages (8.2%) 400 Premises and equipment 20 Equity 400 Total assets $3.945 Total liabilities and equity $3.945 a. What is the repricing gap if the planning period is 30 days? 6 months? 1 year? 2 years? 5 years? b. What is the impact over the next six months on net interest income if interest rates on RSAS increase 60 basis points and on RSLs increase 40 basis points? c. What is the impact over the next year on net interest income if interest rates on RSAs increase 60 basis points and on RSLs increase 40 basis points