A bank has the following interest-bearing assets and liabilities. The net annual interest (stated in terms of simple annual compounding) is given after each security name. The mortgage, Coupon Bond, and CDs have fixed future cash-flows, whereas the Business Loan automatically adjusts based on the current federal funds rate. The bank is also borrowing on a daily rolling basis from other banks at the current federal funds rate. The current federal funds rate is 3%

Assets	Value (millions)	Principle	Duration (in years)
Fixed Rate Mortgage (5%)	$70	$70	6
Adj. Business loans (Fed Funds + 3%)	$30	$30	0
Coupon Bonds (Coupon 4%)	$20	$20	5
Liabilities
Certificates of Deposit (non renewable, 3%)	$50	$50	2
Daily Borrowing from Money Market (fed funds rate)	$30	$30	0

What is the current annual interest income generated from the fixed mortgage?

What is the current annual interest expense from the borrowing in the money market?

Based on these assets and liabilities, if the fed funds rate remains at 3%, what is the banks net interest income?

What is the net $-Duration of the banks assets?