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ASSETS LIABILITIES 2-year commercial loans, 10 %, annual fixed rate, at par $800 million 1-year CDs, 7 % annual fixed rate, at par $900 million

ASSETS LIABILITIES

2-year commercial loans, 10 %, annual fixed rate, at par

$800 million

1-year CDs, 7 % annual fixed rate, at par

$900 million

1-year Treasury bills

$200 million

Net Worth (Equity)

$100 million

31) What is the repricing gap over the 1-year maturity interval?

32) If all interest rates decrease by 15 basis points (0.15%), what is the expected impact on the FI's net interest income?

33) What is the two year repricing gap?

34) If all interest rates decrease by 20 basis points (0.2%), what is the expected impact on the FI's net interest income?

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