Assets

Amount

Rate

Liabilities

Amount

Rate

Rate

Sensitive

$$35,000,000$

$10\%$

Rate

Sensitive

$$40,000,000$

$8\%$

Fixed Rate

$$21\mathrm{.}000\mathrm{.}000$

$9\%$

Fixed Rate

$$12\mathrm{.}000\mathrm{.}000$

$7\%$

Non$-$earning

$ $4\mathrm{.}000\mathrm{.}000$

Equity

$ $8\mathrm{.}000\mathrm{.}000$

The balance sheet of ARGH Insurance shows the following fixed and rate$-$sensitive assets and liabilities.

$32.$ See ARGH Insurance informatinon.

What will be the FI's net interest income at year$-$end if interest rates do not change? a$.$

$$4\mathrm{.}04$ million.

b$.$ $$3\mathrm{.}20$ million.

$$1\mathrm{.}89$ million.

d$.$

e$.$

$$1\mathrm{.}35$ million.

$$5\mathrm{.}39$ million.

$33.$ See ARGH Insurance informatinon.

What is the repricing gap for the FI$?$

$$5,000,000.$

b$.$ $O$.$

$$9\mathrm{.}800\mathrm{.}000.$

d$.$

e$.$

$-$$$8\mathrm{.}000,000.$

$-$$$5,000,000.$

$34.$ See ARGH Insurance informatinon.

Suppose short$-$term interest rates increase by $1$ percent. Calculate the change in net interest income after the interest rate increase.

$$50,000.$

b$.$

c$.$

d$.$

$$53,900.$

$$40,400.$

$$18,900.$

e$.$