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A bank has the following balance sheet: ASSETS: RETURN. MILLION $ Cash 0.00% $ 35 Investments ( < 1 Year) 4.00%. $ 200 Short Term

A bank has the following balance sheet:

ASSETS: RETURN. MILLION $

Cash 0.00% $ 35

Investments (< 1 Year) 4.00%. $ 200

Short Term Loans (<1 Year). 6.00%. $ 225

Long Term Fixed Rate Loans 6.75%. $ 250

TOTAL $ 710

LIABILITIES AND EQUITY COST. MILLIONS $

Fixed Rate Deposits. 3.50% $ 240

Rate Sensitive Deposits. 2.00% $ 260

Fed Fund Borrowings. 2.50% $ 25

Long Term Borrowings at Fixed Rate (Maturity< 1 Year). 5.50%. $ 119

Equity. $ 66

TOTAL $ 710

WHAT IS THE BANKS ONE YEAR REPRICING GAP?

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