(a) The balance sheet of A. G. Fredwards, a government security dealer, is listed below. Market yields are in parentheses and amounts are in millions.

Assets			Liabilities and Equity
Cash 1-month T-bills (7.05%) 3-month T-bills (7.25%) 2-year T-notes (7.50%) 8-year T-notes (8.96%) 5-year munis (floating rate) (8.20% reset every 6 months)	$20 150 150 100 200 50		Overnight repos Subordinated debt 7-year fixed rate (8.55%) Equity	$340 300 30
Total assets	$670		Total liabilities and equity	$670

(i) What is the repricing gap if the planning period is 30 days? 3 months? 2 years? (3 marks)

(ii) What is the impact over the next three months on net interest income if interest rates on RSAs increase 50 basis points and on RSLs increase 60 basis points? (4 marks)

(iii) What is the impact over the next two years on net interest income if interest rates on RSAs increase 50 basis points and on RSLs increase 60 basis points? (3 marks)