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Consider the following balance sheet for Watchover Savings, Inc. (in millions): Liabilities and Equity Now deposits 62 Assets Floating-rate mortgages $ $106 (currently 7% pa)

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Consider the following balance sheet for Watchover Savings, Inc. (in millions): Liabilities and Equity Now deposits 62 Assets Floating-rate mortgages $ $106 (currently 7% pa) 5-year time deposits 91 (currently 11% pa) 30-year fixed-rate loans (currently 8% pa.) 26 21 (currently 7% pa) Equity 153 $ 153 Total Total a. What is Watchover's expected net interest income at year-end? (Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) Net interest income million b. What will be the net interest income at year-end if interest rates rise by 1 percent? (Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16)) Net interest income million c. Using the one-year cumulative repricing gap model, what is the change in the expected net interest income for a 1 percent increase in interest rates? (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places. (e.g., 32.16) Net interest income million

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