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Consider the following balance sheet for Watchover Savings Inc. (in millions) Assets Liabilities and Equity $105 25 20 $150 Floating-rate mortgages (currently 10% p.a.) 30-year

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Consider the following balance sheet for Watchover Savings Inc. (in millions) Assets Liabilities and Equity $105 25 20 $150 Floating-rate mortgages (currently 10% p.a.) 30-year fixed-rate loans (currently 7% p.a.) $ 60 Now deposits (currently 6% p.a.) 5-year time deposits (currently 6% p.a.) Equity 90 Total $150 Total a. What is Watchover's expected net interest income at year-end? (Enter your answer in millions rounded to 1 decimal place. (e.g. b. What will be the net interest income at year-end if interest rates rise by 2 percent? (Enter your answer in millions rounded to1 decimal place. (e.g., 32.1)) c. Using the one-year cumulative repricing gap model, what is the change in the expected net interest income for a 2 percent increase in interest rates? (Negative amount should be indicated by a minus sign. Enter your answer in millions rounded to 1 decimal place a. Net interest income b. Net interest income C. | Change in net interest income million million million

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